Create Transparent Public Procurement Process, Public Oversight of Expenditure and Ensure Value-For-Money Towards Citizen Priorities (KE0015)

Status quo or problem addressed by the commitment Open contracting, the use of data, disclosure and engagement throughout the full procurement cycle, is an essential. The current portal http://bit.ly/1MntBgK by the National Treasury through the IFMIS Re-engineering Department does not conform to Open Contracting Standards. There are key datasets that speak to transparency that are not currently available in the portal. There are several companies that keep getting government contracts, yet deliver bad services or constantly do not meet contractual obligations and have found a way to continuously get awarded contracts. Main objective Create transparent public procurement process, public oversight of expenditure and ensure value-for-money towards citizen priorities. Brief description of commitment Implement the Open Contracting Data Standards (OCDC) on Public Sector Procurement and tender process in Kenya, including a do-not-pay database for black-listed contractors.

6. Transparent public procurement process

Commitment Text:

Title: 6. Create transparent public procurement process, public oversight of expenditure and ensure value-for-money towards citizen priorities

Status quo or problem addressed by the commitment: Open contracting, the use of data, disclosure and engagement throughout the full procurement cycle, is an essential. The current portal http://bit.ly/1MntBgK by the National Treasury through the IFMIS Re-engineering Department does not conform to Open Contracting Standards. There are key datasets that speak to transparency that are not currently available in the portal. There are several companies that keep getting government contracts, yet deliver bad services or constantly do not meet contractual obligations and have found a way to continuously get awarded contracts.

Main objective: Create transparent public procurement process, public oversight of expenditure and ensure value-for-money towards citizen priorities.

Brief description of commitment: Implement the Open Contracting Data Standards (OCDC) on Public Sector Procurement and tender process in Kenya, including a do-not-pay database for blacklisted contractors.

Milestones:

6.1. Mapping current disclosures and data collection against the Open Contracting Data Standard as part of the preparation for the development of an Open Data Policy for IFMIS.

6.2. Re-design the Suppliers Portal of IFMIS according to Open Contracting Data Standards (OCDS)

Responsible institution: National Treasury

Supporting institutions: National Treasury; Council of Governor; Intergovernmental Budget and Economic Council (IBEC); ICT Authority – Kenya; Open Data Initiative (KODI); Institute of Economic Affairs (IEA); Institute of Certified Public Accountants of Kenya (ICPAK); International Budget Partnership (IBP); and Article 19 East Africa

Start date: 30 June 2016

End date: 30 May 2018

Context and Objectives

The commitment seeks to address the problem of secrecy in public contracts by mapping current disclosures and data collection against the Open Contracting Data Standard (OCDS) in preparation for the development of an Open Data Policy for Integrated Financial Management Information System (IFMIS). IFMIS is an automated online system that enhances efficiency in planning, budgeting, procurement, expenditure management and reporting in the national and county governments in Kenya. Public contracting in Kenya has been characterised by poor planning and corruption as well as poor contract management.^{[Note115: Okiya Omtatah Okoiti & 2 others v Attorney General & 3 others (High Court of Kenya at Nairobi, 2014) http://kenyalaw.org/caselaw/cases/view/103808/.] Contracting information is often unavailable for public monitoring. For instance, a petition was filed in court that challenged the awarding of a government contract to a single-sourced contractor for a landmark railway project; the petition alleged that the Government failed to undertake due diligence in contracting the China Road and Bridge Corporation, which was blacklisted by the World Bank and declared ineligible for World Bank funding.}

The current suppliers’ portal^{[Note116: IFMIS Re-Engineering, 'Home' (2018) supplier.treasury.go.ke/site/tenders.go/index.php/.] by the National Treasury through the IFMIS Re-engineering Department does not conform to Open Contracting Standards. The main objective of this commitment therefore is to ensure the implementation of the Open Contracting Data Standards (OCDS) in public sector procurement and the tender process in Kenya. OCDS ensures disclosure and use of data on public contracts, allowing engagement and public oversight throughout the full procurement cycle.}

The commitment is relevant to access to information, and technology and innovation for transparency and accountability. Its potential impact is coded as major because its full implementation as written would create a more transparent public procurement process through open contracting data standards.

Completion

This commitment has not started. The point of contact at the National Treasury, which is the lead implementation agency, indicated he was not aware of the commitment.^{[Note117: Jerome Ochieng, meeting with the IRM researcher, National Treasury, IFMIS offices: 12 Oct. 2017. ]}

ARTICLE 19 is discussing with the Public Procurement and Oversight Authority mapping current disclosures and data collection against the Open Contracting Data Standard in preparation for the development of an Open Data Policy for the Integrated Financial Management Information System (IFMIS). A major setback has been that the mandate is under the National Treasury and not the Public Procurement and Oversight Authority.

During the CSO roundtable meeting to track progress of OGP commitment implementation in May 2017, participants discussed the opportunity to provide technical support to the current Integrated Financial Management Information System (IFMIS) to ensure it is aligned with the Open Contracting Data Standard. Hivos and Article 19 pledged support for multi-stakeholder engagements to improve transparency in public procurement and financial value for citizens’ public priorities. However, the government has not taken any steps towards implementation.

Next Steps

The researcher recommends the commitment be carried forward to the next action plan.

It is recommended that the Public Procurement and Oversight Authority be the lead agency for the commitment on public procurement and open contracting. Elements of IFMIS should be handled by the IFMIS department of the National Treasury.

To leverage the expertise of CSOs such as ARTICLE 19 and Hivos, the government needs to actively engage with these groups through a roundtable to take stock of progress, reflect on gaps and map the way forward.

6. Transparent Public Procurement Process

Commitment Text:

Title: 6. Create transparent public procurement process, public oversight of expenditure and ensure value-for money towards citizen priorities

Status quo or problem addressed by the commitment: Open contracting, the use of data, disclosure and engagement throughout the full procurement cycle, is an essential. The current portal http://bit.ly/1MntBgK by the National Treasury through the IFMIS Re-engineering Department does not conform to Open Contracting Standards. There are key datasets that speak to transparency that are not currently available in the portal. There are several companies that keep getting government contracts yet deliver bad services or constantly do not meet contractual obligations and have found a way to continuously get awarded contracts.

Main objective: Create transparent public procurement process, public oversight of expenditure and ensure value-for-money towards citizen priorities.

Brief description of commitment: Implement the Open Contracting Data Standards (OCDC) on Public Sector Procurement and tender process in Kenya, including a do-not-pay database for blacklisted contractors.

Milestones:

1. Mapping current disclosures and data collection against the Open Contracting Data Standard as part of the preparation for the development of an Open Data Policy for IFMIS.

2. Re-design the Suppliers Portal of IFMIS according to Open Contracting Data Standards (OCDS)

Responsible Institution: National Treasury

Supporting Institutions: National Treasury; Council of Governor; Intergovernmental Budget and Economic Council (IBEC); ICT Authority – Kenya; Open Data Initiative (KODI); Institute of Economic Affairs (IEA); Institute of Certified Public Accountants of Kenya (ICPAK); International Budget Partnership (IBP); and Article 19 East Africa

Start Date: 30 June 2016

End Date: 30 May 2018

Commitment Aim

This commitment planned to create transparent public procurement process, public oversight of expenditure, and ensure value for money towards citizen priorities.

Status

Midterm: Not Started

This commitment was not started by the midterm. At that time, the point of contact at the National Treasury, the lead implementation agency, informed the IRM researcher that he was unaware of the commitment.

End of term: Not started

By the end of term, this commitment remained not started. The National Treasury point of contact’s duties were reassigned, and the point of contact was appointed the new Principle Secretary for ICT and Innovation.

Did It Open Government?

Access to Information: Did Not Change

At the end of the action plan, this commitment’s implementation had not started, and the point of contact at the National Treasury had been reassigned to a different agency. Therefore, it did not lead to any changes in government practice.

Carried Forward?

This commitment has been carried forward to Kenya’s next action plan. Commitment 2 in the 2018–2020 action plan calls for implementing the Open Contracting Data Standards (OCDS) to improve transparency and reduce opportunities for corruption by enhancing openness and accessibility of the Public Procurement Information Portal.