Policies

Ananya Kallyan Sangathon (AKS)
Procurement Policy

  1. Purpose

The purpose of this Procurement Policy is to ensure that all goods, works, and services procured by Ananya Kallyan Sangathon (AKS) are obtained in a transparent, accountable, cost-effective, and ethical manner. This policy aims to promote fair competition, achieve value for money, and prevent any form of fraud, corruption, or conflict of interest in procurement processes.

  1. Scope

This policy applies to all procurement activities undertaken by AKS, whether funded by internal sources or external donors (including government, international, or private funding agencies). It covers:

  • Purchase of goods and materials
  • Contracting of works and services
  • Hiring of consultants and vendors
  • Any other expenditure related to project or administrative operations.
  1. Guiding Principles
  1. Transparency: All procurement processes shall be open, documented, and traceable.
  2. Accountability: All staff involved in procurement are responsible for ensuring compliance with this policy.
  3. Value for Money: AKS shall seek the best combination of quality, cost, and delivery time.
  4. Fair Competition: Equal opportunity shall be given to all qualified suppliers.
  5. Integrity: Procurement staff shall avoid any conflict of interest or personal gain.
  6. Environmental and Social Responsibility: AKS encourages procurement of eco-friendly and locally produced goods where feasible.
  1. Procurement Authority and Responsibility
Designation/Committee Responsibility
Executive Director Approves procurement above the defined threshold; ensures compliance with donor and organizational policy.
Procurement Committee (PC) Reviews quotations, evaluates bids, and recommends suppliers.
Finance & Admin Officer Prepares procurement documentation, maintains records, ensures budget availability.
Project Manager / Requisitioning Unit Initiates purchase requisition and verifies technical specifications.
Storekeeper / Admin Assistant Receives, records, and issues procured goods.
  1. Procurement Methods

Depending on the estimated value and nature of procurement, AKS shall apply one of the following methods:

Procurement Type Estimated Value (BDT) Method Process Description
Petty / Local Purchase Up to 10,000 Direct Purchase Obtain one quotation; documented justification required.
Request for Quotation (RFQ) 10,001 – 100,000 Competitive Quotation Minimum three written quotations; comparison sheet required.
Open Tender / Bid 100,001 – 500,000 Open Tender Public invitation through notice board, local circulation, or online; evaluation by committee.
National Competitive Bidding Above 500,000 Tender Committee Advertised nationally; formal bid opening, evaluation, and approval.
Single Source / Direct Contracting Any value (with justification) Exceptional Method Used only in emergencies or when only one supplier exists; prior approval from ED required.
  1. Procurement Process Flow
  1. Purchase Requisition (PR):
    Initiated by the requesting unit, approved by the Project Manager or relevant authority.
  2. Quotation / Tendering:
    Procurement Committee obtains and records quotations or bids based on the method applied.
  3. Bid Evaluation:
    Evaluation shall be based on criteria such as price, quality, experience, and delivery time. A comparative statement (CS) must be prepared.
  4. Approval:
    The authorized signatory (as per delegation of authority) approves the selected supplier.
  5. Purchase Order (PO):
    Issued by Finance/Admin to the selected supplier, signed by both parties.
  6. Delivery & Inspection:
    Goods are received and inspected by the Storekeeper or designated officer. A Goods Received Note (GRN) is issued.
  7. Payment:
    Payment is made upon satisfactory delivery and submission of invoice and delivery documents.
  8. Record Keeping:
    All procurement-related documents (PR, RFQ, CS, PO, GRN, invoices, etc.) are filed and archived for at least five years.
  1. Conflict of Interest

No employee or committee member shall participate in any procurement decision in which they or their family members have a financial or personal interest. All such potential conflicts must be declared in writing.

  1. Ethical Standards

AKS staff and suppliers must adhere to ethical standards including:

  • Zero tolerance for bribery, kickbacks, or fraud.
  • Confidentiality of supplier information.
  • Respect for local labor laws and environmental regulations.

Violation of ethical standards may lead to disciplinary action, contract termination, or legal proceedings.

  1. Supplier Selection and Evaluation

Suppliers shall be evaluated based on:

  • Legal registration and tax compliance
  • Technical capacity and past performance
  • Price competitiveness and reliability
  • Commitment to environmental and gender-sensitive practices

A Supplier Database shall be maintained and updated annually.

  1. Asset and Inventory Management

All procured items classified as assets shall be recorded in the Fixed Asset Register with a unique asset code, location, and custodian name. Consumable items shall be entered in the Inventory Register.

  1. Procurement Committee (PC) Composition

The Procurement Committee shall consist of:

  1. Executive Director or Representative (Chair)
  2. Finance and Admin Officer (Member Secretary)
  3. Project Manager / Program Coordinator
  4. One Technical Expert (as applicable)
  5. One Independent Member (optional, for high-value procurements)

Minutes of all committee meetings must be documented and signed.

  1. Procurement Threshold and Approval Matrix
Value Range (BDT) Recommended Method Approving Authority
Up to 10,000 Direct Purchase Project Manager
10,001 – 100,000 RFQ Procurement Committee & ED
100,001 – 500,000 Open Tender Executive Director
Above 500,000 Competitive Bidding Executive Director with Governing Body Approval
  1. Emergency Procurement

In emergencies (e.g., disaster response, urgent field requirements), procurement may bypass normal procedures with written justification and approval from the Executive Director. The process must still ensure accountability and transparency.

  1. Documentation and Record Keeping

All procurement documents must be properly labeled and filed (hard copy and soft copy). Records should be retained for audit and donor compliance purposes.

Documents include:

  • Purchase Requisition (PR)
  • Request for Quotation (RFQ)
  • Comparative Statement (CS)
  • Purchase Order (PO)
  • Goods Received Note (GRN)
  • Supplier Invoice and Payment Voucher
  • Procurement Committee Minutes
  1. Audit and Compliance

Procurement records shall be subject to internal and external audits. Findings and recommendations from audits must be acted upon by management to strengthen internal control systems.

  1. Review and Amendment

This policy shall be reviewed every two years or as required to align with updated donor guidelines, national laws, or organizational needs. Revisions must be approved by the Executive Director and endorsed by the Governing Body.

  1. Effective Date

This Procurement Policy comes into effect on the date of its approval by the Governing Body of Ananya Kallyan Sangathon (AKS).

Approved by:
Executive Director, Ananya Kallyan Sangathon (AKS)
Date of Approval: _____________________
Signature: ___________________________