OUR STRATEGY

OUR SUPPLIERS

activities that enable and create value for suppliers
  • Timely payment
  • Fair treatment of suppliers
  • Strict code of conduct
  • Zero tolerance for bribery and corruption
  • Good relationships
outputs
  • Competitive pricing
  • Transparency of goods and services supplied
  • Suitable suppliers
  • Professional and unbiased dealings
  • Confidentiality of information
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beneficial outcomes for all
  • Domestic growth
  • Compliance with statutory legislation
  • Sustainable value chain
  • Responsible purchasing
  • Support of local suppliers

Our supplies are one of the Fund’s key stakeholders and are integral in contributing to strategic success. The Fund strives to streamline procurement processes, mitigate the procurement risks, comply with established regulations and reduce the cost of acquisition of goods, works and services. Embracing procurement automation, coupled with data analytics, accelerated decision making has significantly improved procurement processes.

The Fund has progressed well on the following projects; Pension Towers, Lubowa Housing, Offtaker, Mbale Commercial Development and Design and Build of Temangalo. Some challenges were experienced arising from the Covid-19 lockdown due to the scarcity of raw materials and labour, leading to cost and time overruns for Pension Towers, Lubowa Housing Projects and the Pension Administration Project. The Fund also experienced failed deliveries and delayed sourcing of project contractors due to PPDA guidelines that required all procurements above UGX 200m to be put on hold during the lockdown.

Highlights for FY 2020/2021:

  • Data science and improved data analytics contributed to a 95% achievement of planned performance, efficient monitoring of contracts worth UGX 670Bn

  • The cost of acquisition of goods, services and works was reduced by UGX 23Bn

  • The Fund was rated at 100% with no gaps in procurement data through the Data Management Maturity model

  • Procurement risks were controlled and rated at 93%

  • Achieved an internal audit rating of 91% and PPDA audit rating of 89.3%

  • Maintained a 100% clean record in awarding of procurement contracts (no administrative reviews upheld against the Fund)

  • Procurement efficiency was rated at 94% despite the Covid-19 disruptions

  • The Procurement department maintained an engaged team at a score of 97%, this is attributed to great leadership.

Contracts worth UGX 56.3Bn were awarded to local firms in the FY 2020/2021 including the design and build of Mbale Development Project compared to UGX 13.Bbn awarded in 2019/2020. Contracts worth UGX 82.8Bn were awarded to foreign firms with at least 30% subcontracted to local firms.

The Fund held a Virtual NSSF Suppliers’ Forum with the objective to equip current and potential suppliers with knowledge on public procurements and obtaining feedback. Business opportunities unveiled to suppliers included Strategic Land Purchase (UGX 250Bn), Consultancy for Bwebajja Government Campus (UGX 60Bn), Acquisition of ERP (UGX 8Bn), Supply of Motor Vehicles (UGX 7Bn), Security enhancement programme (UGX Bn) Construction of UJOA House (UGX 2Bn), Vmware Infrastructure Upgrade (UGX 1.5Bn) among others.

Supplier forum highlights:
  • The virtual forum hosted 5,000 participants online vs. 300 who attended the event onsite
  • The forum attracted 42.5m potential impressions with 85% positive sentiments
  • Overall satisfaction level of 97%
  • Suppliers were advised to invest in data analytics and technology to enable them to successfully win public tenders in the digital era.
    • With the deployment of the electronic Government Procurement (eGP) system, suppliers need more technical IT Skills to use the technology.
The Fund prioritised procurement sustainability initiatives during the FY 2020/21 which included:
  • Use of low energy-efficient technologies such as solar systems
  • Green certification of Pension Towers and Lubowa Housing Project
  • Reservation of procurements to subcontracted local firms
    • 30% of works contracts are awarded to local firms
  • All firms are required to uphold the highest ethical standards at all times and meet minimum standards set by UNBS and ISO or other equivalent standards bodies
  • All the procured furniture must be composed of Medium Density Fiberboard (MDF) which supports environmental sustainability goals for forests preservation and the requirement for reduced bulk packaging of the product
  • The number of physically received bids was reduced to one, thus reducing the printing and paper requirements for suppliers
The Fund shall continue to focus on:
  • Reducing procurement turn around time
  • Strengthening collaborations and partnerships
  • Automating procurement processes and improving procurement data
  • Providing more options to our customers through research
  • Strengthening capabilities of staff through continuous reskilling
  • Finding alternatives to the current products/services through innovation
  • Implementation of sustainable procurement initiatives