Learning Goal: I’m working on a supply chain case study and need support to help

Learning Goal: I’m working on a supply chain case study and need support to help me learn.The procurement of products and services by government funded schools represents a significant sum of money spent in an important area of the public sector. Staffing typically amounts to around 70% of school costs. The remainder consists of operating and maintenance expenditures, such as gas and electricity, catering, stationery, buildings maintenance, cleaning and insurance. These are purchased from external suppliers and account for a sizeable proportion of any school’s budget. There is a growing focus on the importance of procurement activity within schools, as they have often failed to comply with government procedures for procurement.A report entitled ‘Review of Efficiency in the Schools System’ published in 2013 found that too many schools continue to purchase products and services individually. They have failed to realize potential economies of scale which might have been achieved by collaborating with other schools by using a consortium or group buying approach. Where competition was sought, contracts were often awarded to suppliers purely on the basis of the lowest prices. This focus on price often created problems with the quality of product and service that were supplied. For example, in the case of catering, pupils could have been offered food with little nutritional value or a limited range of healthy options. By contrast, in other categories of procurement, such as in the supply of energy and insurance of personnel and buildings, very little competition was evident. A survey of prices for routine items (such as stationery) showed how they varied hugely by supplier, depending on the supplier selected. The report also highlighted a sample of 23 schools, all based within a 15-mile radius of each other, with a combined spend on purchased goods and services of approximately GHC 40,000,000per year.The following issues were identified:• 1,828 different suppliers were used • The annual spend with 1,524 of these suppliers was less than GHC 4000 each • The schools in the sample were using the same suppliers, but on varying terms and conditions • Schools were also paying different amounts for the same goods and services.QUESTION 1) As a procurement person taking into consideration the Public Procurement Act, especially the procurement threshold what procurement method will you use for this buying. Justify your answer by referring to the act stating why?2) Describe the sequential stages of a typical tendering process that could be adopted by a new buying consortium for schools taking into consideration the Public Procurement Act.
Requirements: 4 pages

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