Procurement management Jamaica Constabulary Force (JCF)

1. Procurement management Jamaica Constabulary Force (JCF) April 2019

2. Why is Public Sector Procurement Important for JCF? JCF is the body responsible for the maintenance of law and order to create a safe and secured society, which is a goal in the Vision 2030, National Development Plan (NDP). The procurement of goods and service is a major part of JCF’s support functions, necessary for the effective execution of its mandate. Therefore, this function should be properly managed to enable the efficient and cost effective acquisition of quality goods and services, to aid core operational activities.

3. Rationale for the Audit

4. Objective of the Audit

5. Key Audit Question Did JCF plan strategically and conduct its procurement activities in embracing good practices and forward thinking, to attain value for money?

6. General Principles of Good Governance in Public Procurement to attain Value for Money

7. What we found

8. For the five-year period, 2013-14 to 2017-18, JCF realized total savings of $427 million from the purchase of retail and bulk fuel, under a framework arrangement between Ministry of Finance and the Public Service (MoFPS) and petroleum marketing companies. $427 million savings on Fuel Purchases

9. JCF implemented fuel cost containment measures which included daily refuelling limits, monitoring of fuel purchases against tank size and reconciliation of refuelling transaction receipts. which realized a gradual reduction in the fuel volume purchased. This contributed in a gradual decline in the volume of retail fuel purchased, to 6.4 million litres in 2017-18 from 7.7 million litres in 2013-14. Decline in Fuel purchases From 7.7M Litres to 6.4M Litres Between 2013-14 and 2017-18

10. JCF failed to establish clear linkages between the annual operational targets and related procurement activities as there was a disconnect between the annual operational plans and procurement plans. For example, the operational plan to recruit new policemen was not aligned with procurement plans for new uniforms. Deficiencies such as these, limited the JCF’s ability to schedule the acquisition of goods and services on a timely basis to and achieve value for money spent. Weaknesses In Procurement Planning

11. Given JCF’s frequent use of emergency and direct contracting methodologies to procure goods and services, a significant number of high value transactions did not meet the important principles of transparency, competition and fairness. Frequent Use of Emergency & Direct Procurement Methodologies

12. The method of selecting caterers for detainees’ meals lacked transparency. JCF continually used the same caterers for years. This opened the process to the risk of impropriety and nepotism. Further, the contracts did not stipulate service and performance standards and hence there were inconsistencies in the dietary meal plans and service standards across the various police stations. Meals for Detainees Lacked transparency and was not subjected to annual review

13. Of a sample of 165 contracts valuing $349.7 million, JCF awarded 161 contracts (92 per cent) valuing $320 million through the emergency and direct contracting procurement methodologies. JCF did not demonstrate that its maintenance and repair activities were cost effective given that it often conducted these activities on an unplanned basis using direct and emergency procurement methods. Maintenance Activities unplanned and not cost effective to attain VFM

14. What should be done

16. ‘A better Country through effective audit scrutiny’