Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694871111692.pdf (Jamaica)
AUDITOR GENERAL’S DEPARTMENT PERFORMANCE AUDIT REPORT PROCUREMENT MANAGEMENT JAMAICA CONSTABULARY FORCE (JCF) The Auditor General is appointed by the Governor General and is required by the Constitution, Financial Administration and Audit Act, other sundry acts and letters of engagement, to conduct audits at least once per year of the accounts, financial transactions, operations and financial statements of central government ministries and departments, local government agencies, statutory bodies and government companies.
The Department is headed by the Auditor General, Pamela Monroe Ellis, who submits her reports to the Speaker of the House of Representatives in accordance with Section 122 of the Constitution of Jamaica and Section 29 of the Financial Administration and Audit Act.

This report was prepared by the Auditor General’s Department of Jamaica for presentation to the House of Representatives.

Auditor General of Jamaica Auditor General’s Department 40 Knutsford Boulevard Kingston 5, Jamaica, W.I.
www.auditorgeneral.gov.jm ‘A better Country through effective audit scrutiny’ Page 1 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Table of Contents AUDITOR GENERAL’S OVERVIEW ............................................................................................................................. 6 EXECUTIVE SUMMARY ............................................................................................................................................. 8 WHAT WE FOUND ........................................................................................................................................................... 8 WHAT SHOULD BE DONE ................................................................................................................................................ 11 PART ONE .............................................................................................................................................................. 12 INTRODUCTION .................................................................................................................................................. 12 WHAT IS PROCUREMENT?
.............................................................................................................................................. 12 WHY IS PUBLIC SECTOR PROCUREMENT IMPORTANT FOR JCF?..............................................................................................
12 RATIONALE FOR THE AUDIT ............................................................................................................................................. 13 THE AUDIT OBJECTIVE AND SCOPE ..................................................................................................................................... 14 THE AUDIT METHODOLOGY ............................................................................................................................................. 14 PART TWO ............................................................................................................................................................. 16 PROCUREMENT PLANNING ................................................................................................................................ 16 NO EVIDENCE THAT THE PLANNING OF JCF’S PROCUREMENT ACTIVITIES WERE INFORMED BY CORPORATE STRATEGIES ...................... 17 PART THREE ........................................................................................................................................................... 20 PROCUREMENT ACTIVITIES .............................................................................................................................. 20 JCF PROCUREMENT METHODOLOGIES OFTEN UNDERMINED GOOD PRACTICE AND RECEIPT OF VALUE FOR MONEY ............................ 20 THE PROCESS BY WHICH JCF SELECTED CATERERS TO PROVIDE MEALS FOR DETAINEES LACKED TRANSPARENCY ................................. 21 NEEDS ASSESSMENT AND FORWARD PLANNING COULD BETTER AID JCF’S PROCUREMENT OF POLICE UNIFORMS ............................... 23 JCF DID NOT ALWAYS DEMONSTRATE IT OBTAINED REPAIRS AND MAINTENANCE CONTRACTS AT THE BEST PRICE ............................... 25 JCF IMPLEMENTED FUEL COST CONTAINMENT MEASURES ALTHOUGH NOT ALL WERE MONITORED FOR EFFECTIVENESS ...................... 26 APPENDICES ........................................................................................................................................................ 30 APPENDIX 1 BUILDING BLOCKS OF VALUE FOR MONEY (VFM) .............................................................................................. 30 APPENDIX 2 OPERATIONS PLAN MAJOR TASKS AND TARGETS - 2015-16 TO 2017/2018 .......................................................... 31 APPENDIX 3 PAYMENTS MADE TO CATERERS OF DETAINEES' MEAL 2013-14 TO 2017-18 ........................................................ 33 APPENDIX 4 DETAINEES’ MEAL SERVED AT SELECTED POLICE LOCKUPS ON DAY OF VISIT ............................................................. 35 Page 2 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 This report contains our findings on Procurement Management at the Jamaica Constabulary Force (JCF).
Page 3 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Performance Audit Report on Procurement Management at the Jamaica Constabulary Force (JCF) Purchase of Goods and Services: Key Data Approved Budget $15.2B Actual Expenditure $14.6B Summary of Main Findings  Procurement activities were not aligned with operational targets and goals to ensure the most economical use of the $3 billion on average, allocated annually for the purchase of goods and services.
 The use of direct and emergency procurement methodologies for contracts valuing $1.8 billion to manufacture police uniforms, provide meals for detainees and conduct repairs and maintenance of police facilities, undermined opportunities to obtain these goods and services at the available best prices.

 JCF realised savings of $427 million on fuel purchases despite deficiencies in other cost containment measures.
Conclusion and Recommendation JCF procurement activities did not always facilitate cost effective acquisition of goods and services.

Deficiencies were identified in JCF procurement management, underscoring the need for greater emphasis on proactive procurement planning and monitoring to identify cost reduction opportunities and containment measures in order to benefit from savings in the long-term.
Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Page 4 Page 5 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Auditor General’s Overview Public procurement accounts for a significant amount of public expenditure.
This demands that appropriate and effective mechanisms are in place, to reduce the risk of loss and waste arising from deficient procurement planning and practices that undermine systems intended to secure equitable and transparent distribution of funds.

In support of the Handbook of Public Procurement Procedures, the Public Procurement (Amendment) Act 2018, aims to regulate the procurement of goods, works and services by public entities and provides for criminal charges against persons found in breach.
The Procurement Regulations, passed by Parliament, gave effect to the provisions of the Act.

Further, it is essential that the Country obtains value for money from the limited funds available to acquire goods and services to support Jamaica’s Vision 2030 objective of a safe and just society.
I commissioned an audit of the Jamaica Constabulary Force (JCF), which is among the five largest spenders of budgetary resources, to assess its conformance with procurement rules and guidelines governing procurement management and execution.

The report highlights positive results achieved by JCF arising from internal controls for fuel usage, as well as an initiative undertaken in conjunction with the Ministry of Finance in relation to fuel, both contributing to cost savings.
However, JCF did not extend the same principle of control to other large procurement activities such as uniforms and detainees’ meals.

There were instances in which the management of procurement activities for selected high-value expenditure areas did not conform with good procurement practices and were in breach of the procurement guidelines.
In a number of cases, the justifications cited for the use of the direct and emergency contracting methodologies were not in keeping with the allowable circumstances outlined in the procurement guidelines and by extension, prevented JCF from securing maximum value from the monies spent.

Proper planning would enable the use of competitive bidding, which secures transparency in the awarding of contracts.

JCF should also capitalise on its advantage as a bulk purchaser.
Thanks to the management and staff of JCF for the cooperation and assistance given to my staff, during the audit and I urge JCF to take urgent action to implement the recommendations in this report.

I also encourage accountable officers in other public sector entities to learn from the issues highlighted and take the necessary steps to address similar weaknesses in their respective entities.
Pamela Monroe Ellis, FCCA, FCA Auditor General Page 6 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Page 7 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Executive Summary Allocations for the purchase of goods and services for the Jamaica Constabulary Force (JCF) averaged $3 billion annually, over the five-year period, 2013-14 to 2017-18.
There is public concern about the shortage of resources 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).

In achieving these goals, and in the context of scarce budgetary resources, procurement is an important function that JCF will have to get right in ensuring timely and economical acquisition of quality goods and services to equip it with the tools to carry out its responsibilities.
Against this background, we conducted a performance audit to determine whether JCF strategically planned and conducted its procurement activities by embracing good practices, including forward planning to attain value for money.

As indicated in this report, JCF did not ensure proper procurement planning so that it aligned the purchasing activities indicated in its procurement plans with the objectives and major tasks in its strategic and operational plans.
In addition, JCF did not always demonstrate that it made efforts to ensure it obtained value from the procurement of goods and services under key expenditure areas.

In general, JCF’s procurement processes did not always encourage competition, in accordance with the procurement guidelines to be assured that it obtained value for money.

Part 1 of the report introduces the importance of having robust public sector procurement management, audit scope, objectives and methodologies.
Parts 2 and 3 contain detailed findings under two main headings, Procurement Planning and Procurement Activities and are summarised below.

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

What we found Procurement Planning 1.


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.

The purchase of fuel is the single largest expenditure under goods and services for JCF, averaging $863 million annually.
The price of fuel supplied to JCF for Government-owned vehicles is discounted by the marketing companies, based on the Framework Agreement.

JCF operates six bulk storage facilities in Kingston and St. Andrew.

We noted that bulk fuel purchases declined sharply to 184,000 litres in 2017-18 from 764,000 litres in 2013-14 (Figure 4) and JCF partly attributed the reduction to down time experienced at three of its bulk fuel locations, due to repairs.
JCF as part of its fuel conservation activities action plan for 2017-18, had considered the expansion and modernisation of bulk facilities especially in police divisions where the larger amount of its fleet is assigned1.
Twenty-five per cent of JCF’s vehicle fleet was 1 Report from the vehicle management unit (June 7, 2017) Page 8 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Executive Summary assigned to Kingston and St. Andrew, 14 per cent to St. Catherine and 10 per cent to St. James.

However, the expansion and modernisation initiative is yet to materialise.

2.

JCF implemented fuel cost containment measures, which realized a gradual reduction in the fuel volume purchased.
Given the size of its fleet, the nature and extent of its operations, JCF recognised the need to heighten controls over vehicles and fuel usage and monitoring, and accordingly, implemented four cost savings mechanisms.
These included a daily refuelling limit for each service vehicle, monitoring fuel purchases for each vehicle by comparing volumes purchased against the vehicle’s tank capacity, reconciliation of refuelling transaction receipts with Jamaica Automobile Association (JAA) system and assigning fuel baseline efficiency ratios for different types of vehicles within its fleet, to provide an awareness of vehicles operational efficiency.
Since the introduction of the daily refuelling limit in July 2011, JCF has experienced a gradual declining trend in the volume of retail fuel purchased, moving to 6.4 million litres in 2017-18 from 7.7 million litres in 2013-14.

3.

Despite the gains aforementioned, JCF still had significant room for improved efficiencies and economy.

JCF failed to establish clear linkages between the annual operational targets and related procurement activities.
This apparent disconnect between the annual operational plans and procurement plans, limited the JCF’s ability to schedule the acquisition of goods and services on a timely basis to and achieve value for money spent.

Consequently, we were unable to determine how the JCF assessed its performance relative to target or effectively allocated budgetary resources.
For example, whereas JCF targeted the recruitment of 828 police officers for 2015-16, its procurement plans did not reflect the additional uniforms that would be required for new recruits.

The purchase of uniforms is the second single largest expenditure area under goods and services over the five-year period.
Due to poor planning, JCF made multiple purchases of uniform material and entered into contracts for the manufacture of uniforms, utilising the emergency and direct contracting methodologies for $623.4 million or 61 per cent of transactions, depriving itself of the ability to obtain uniforms at best available price.

This practice by JCF neither provided the confidence nor evidence it acted with the intention to receive the most economical outcome.
However, JCF could have utilised the limited tender methodology, among the pre-qualified suppliers, which would have provided the opportunity not only to encourage transparency in the awarding of contracts, but also to benefit from its advantage as a bulk purchaser through competitive means.

Further, in its 2017-18 Operational Plan, JCF identified the acquisition of arms, equipment and vehicles to facilitate the proper execution of policing duties as a major task and target.
However, procurement specific to these activities was not quantified in the related Procurement Plan, as specified in Appendix one of the Handbook of Public Sector Procurement Procedures.

The Procedures outline that the procurement plan should specify what to buy, in what quantity and from which source.

Page 9 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Executive Summary 4.
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.

These are good practices in procurement, which create value.

The competitive bidding procurement methodology is required as it facilitates transparency and the provision of opportunities to obtain quality goods and services at the best price.
JCF’s use of emergency and direct contracting methodologies did not guarantee that the best prices would be obtained for goods and services.

For example, JCF used the emergency, direct emergency contracting and direct contracting methodologies, for $1.8 billion (81 per cent) of contracts valuing $2.2 billion, to provide meals for detainees, clothing and uniforms for police officers and repairs and maintenance to facilities.
The annual sum of $828 million (59 per cent) of its food and drink expenditure was paid to supply meals for detainees over the five-year period, 2013-14 to 2017-18.

In many instances, the annual sums paid exceeded the threshold, which would require the use of competitive bidding (Appendix 3).

In those cases, JCF would not have satisfied itself that it paid the best price for construction and repair services and that the procurement process was transparent.
JCF noted that going forward, the practice will be to procure sufficient uniform supplies to meet the yearly demand using the competitive tender process.

5.

The method of selecting caterers of meals for detainees held in police lockups was not subject to annual review as the JCF continually used the same caterers for years and there was no evidence of contracts for seven caterers.
JCF spent $1.4 billion for food and drink over the five-year period, with the greater portion, $828 million (59 per cent) spent on meals to feed detainees held in police lockups.

The selection of caterers of detainees’ meals was determined at the local police stations, which directly engaged contractors to supply three meals per day for detainees, based on a cap of $300 specified by MoFPS.
This method of selecting suppliers lacked transparency, which 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.

6.
6.

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.

In achieving an effective maintenance programme, JCF accepted that among the three types of maintenance activities - preventative, corrective and emergency repairs, the use of preventative maintenance was the most economical.
JCF spent a total of $842 million to conduct repairs and maintenance of facilities, during the period 2013-14 to 2017-18; however, expenditure was mainly incurred to conduct unplanned corrective works.

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.
In a number of cases, the justifications cited for the use the direct and emergency contracting methodologies were not in keeping with the allowable circumstances, outlined in the Government’s procurement guidelines, and would constitute a breach and by extension, prevented JCF from securing maximum value from the monies spent.

Page 10 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Executive Summary 7.
JCF failed to maintain a facilities maintenance register, to include at minimum, details of the physical condition, functionality and cost requirement, for the maintenance and repair of police stations.
Without this knowledge, JCF was unable to develop a structured routine work -plan for its construction and repairs programme, an essential first step in attaining the correct balance between preventative, corrective and emergency corrective actions, to ensure an efficient and cost effective repairs and maintenance programme.
What should be done JCF should consistently monitor its procurement activities to identify opportunities for economies of scale, and implement robust internal control mechanisms to support its procurement activities in accordance with its strategic objectives.
Given the need for the efficient allocation of limited resources in the pursuit of its mission and objectives, JCF needs to apply a forward-looking approach to secure opportunities for cost savings in acquisition of quality goods and services at the best available price.

JCF must incorporate a robust system of procurement planning as part of its strategic planning process, to enable consistency in procurement planning and aligning purchasing activities with strategic and operational objectives.
This is also necessary to build a culture of compliance with Government procurement guidelines and to facilitate value for money in the supply of goods and services.

Page 11 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part One Introduction What is Procurement?

1.1 Procurement is the act of obtaining or purchasing goods and services, which involves sourcing activities, negotiation and strategic selection of goods and services of importance to an organization.
For the public sector, procurement is an essential activity that should go beyond basic tasks of ordering and paying for goods and services to embrace timely and strategic planning processes that seek to identify and foster cost savings opportunities in the acquisition of quality goods and services.

Why is Public Sector Procurement Important for JCF?

1.2 An effective procurement management function in the public sector is critical to ensure that Government achieves value from monies spent.
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.
Effective procurement is achieved by aligning procurement needs with strategic and operational goals, which constitute an essential first-step in procurement management.

The procurement process involves various activities from identifying, assessing and prioritizing targets, based on strategic goals and targets, to tendering, selecting qualified suppliers, negotiating contracts and payment terms and monitoring contract performance, to achieve the best value.
Strategic & operational goals & targets Aligning procurement with goals & targets Tendering, supplier qualification, contracts & delivery Benchmarking, KPIs, analysing processes & reporting Savings Lower risk Higher quality Meet Objectives Page 12 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part One Introduction General Principles of Public Procurement 1.3 There is a growing demand from taxpayers, in light of Government’s limited financial resources and allegations of misuse of public funds that the procurement processes of public bodies be transparent as well as promote fairness, competition and accountability.
Public bodies must seek to manage their financial resources, efficiently, effectively and economically, to achieve value for money.

Rationale for the audit 1.4 Procurement management is one of the AuGD’s important strategic priorities in the context of recurring deficiencies identified in the procurement activities of public sector entities.

Over the five-year period, 2013-14 to 2017-18, Parliament provided on average, $33 billion annually to JCF to fund its operations.
Of this, an average $3 billion (nine per cent) was allocated each year for the purchase of goods and services, representing one of the largest goods and service expenditure allocation in the public sector.

Given this allocation and concerns that JCF is inadequately funded, it is important for JCF to obtain value for money to enable the effective delivery of public security services.
Against this background, we sought to determine whether JCF was managing it procurement functions to ensure it achieves value for money spent.
Page 13 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part One Introduction In scoping the study, we also considered how it would contribute to the achievement of the Auditor 1.5 General’s wider strategic aims by:  Targeting coverage of the Auditor General’s audit themes, in particular Governance, Resource, Contracts and Procurement Management, to aid in achieving the AuGD’s Vision of “a better country through effective audit scrutiny” of government operations; and,  Providing assurance to Parliament and the public on the efficiency, effectiveness and economy of the operations of Government Ministries, Departments and Agencies (MDAs) (Appendix 1).
1.6 The audit also aimed to provide insight for accountable officers in other public entities to take steps to correct similar deficiencies where these occur in their respective entities.
The audit objective and scope 1.7 The audit sought to assess whether the procurement management activities at JCF embraced the principles of good governance – incorporating competition, transparency, accountability and fairness and encompassed the achievement of economy, efficiency and effectiveness, to attain value for money.
In this regard, we examined high value goods and service (G&SE) areas for JCF, which are fuel, police clothing and uniform, meals for detainees held in police lockups and construction and repairs of facilities.

The audit methodology 1.8 We planned and conducted our audit in accordance with Standards issued by the International Organization of Supreme Audit Institutions (INTOSAI) that are applicable to Performance Audit.
In this regard, we gained knowledge of JCF’s operation through a review of internal and external information; interviews with management, staff and other stakeholders; observations, walkthroughs and analytical reviews.

We conducted risk assessment and developed an issue analysis with the questions that the audit sought to answer in order to form our opinions and conclusions.

We conducted fieldwork for JCF between November 13 and December 22, 2018, to gather sufficient and appropriate audit evidence.
Page 14 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 General Principles of Good Governance in Public Procurement to attain Value for Money Creating Value Effectiveness Efficiency Economy Meeting the objectives: is concerned with attaining specific aims or objectives and/or achieving the intended results.
Getting the most from available resources: is concerned with the relationship between resources employed, conditions given and results achieved in terms of quality, quantity and timing of outputs and outcomes.

Keeping the resource costs low: is making resources available in due time, in appropriate quality and at the best price.

Good Practices Fairness Impartial and just treatment or behaviour without favouritism or discrimination.
Accountability Transparency Competition The obligation of an individual or organization to account for activities and accept responsibility.

Information is available to everyone - service providers and the public at large, unless there are valid and legal reasons to keep confidential.

Opportunity for eligible parties to be able to submit bids or proposals to provide the goods or services.
Page 15 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Two Procurement Planning 2.1 The GOJ Handbook of Public Sector Procurement Procedures defines procurement planning as “the process by which the efforts of all personnel responsible for procurement are coordinated and integrated to produce a Procurement Plan for fulfilling the procuring Entity's need in a timely manner and at a reasonable cost.
We reviewed the relevant activities of JCF to determine whether its conduct and systems accorded with these objectives.

Assessment Against Criteria At A Glance Systems and practices Strategic, operational and procurement plans prepared.

Procurement plans informed by strategic and operational plans.

Criteria Strategic, operational and procurement plans prepared in accordance with the GOJ governance framework and procurement guidelines.
Procurement plans should reflect and be aligned to corporate objectives and goals, to enable the most efficient and cost effective acquisition of goods and services.

Procurement plans updated to reflect changes.

Procurement plan updated with the status and outcome and reflect readjustments to its purchasing activities.

Audit Findings and observations JCF presented strategic, operational and procurement plans for our review.
There was a misalignment between the operational and procurement plans, which provided no assurance that procurement activities were informed by JCF’s corporate strategies and undertaken in a coherent manner to maximise value for money.

JCF did not consistently update its procurement plans with the status and outcome of purchasing activities and, to reflect adjustments to its purchasing activities.
MET the criteria Met the criteria, but improvements needed Did not meet the criteria 2.2 The public sector generally spends the bulk of its budgetary allocation on staff related emoluments and the purchase of goods and services necessary for the day-to-day operations and the JCF is no exception.

At the same time, concerns have been expressed that annual allocations to acquire critical goods and services for the efficient operations of JCF, are inadequate.
Hence, it is important for JCF to plan procurement activities in a strategic manner to ensure the most efficient use of financial resources.

2.3 Parliament allocated $163 billion to the Jamaica Constabulary Force (JCF) between 2013-14 and 2017-18 (averaging $33 billion annually) for the maintenance of law and order to create a safe and secured society, a goal in the Vision 2030, National Development Plan (NDP).
The larger portion, $138 billion (85 per cent) was used to offset staff salaries and other related payments whereas an average $15 billion Page 16 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Two Procurement Planning (nine per cent) was allocated for the purchase goods and services, over the period (Figure 1).

This was significant as it is among the five largest allocation for goods and services in the public sector.
Figure 1 Analysis of JCF Goods and Service budget and actual expenditure, 2013-14 to 2017-18 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2013-14 $’000 2014-15 $’000 2015-16 $’000 2016-17 $’000 2017-18 $’000 Approved Budget 2,320,564 2,504,246 3,066,439 3,677,616 3,650,001 Actual Expenditure 2,299,099 2,566,175 3,007,884 3,491,139 3,223,530 Net Under/(Over) 21,465 (61,929) 58,555 186,477 426,471 Source: GOJ Estimates of Expenditure and JCF Appropriation Accounts No evidence that the planning of JCF’s procurement activities were informed by corporate strategies 2.4 Identifying and prioritizing procurement needs are important first-steps to the procurement cycle.
JCF outlined its strategic objectives and long- term goals in its corporate plans and prepared the related annual operational plans, with defined tasks and targets.

However, there was a disconnect between the annual operational plans and procurement plans, as we expected JCF’s procurement plans to reflect and be aligned to its corporate objectives and goals, to enable the efficient and cost effective acquisition of goods and services.
2.5 We reviewed the targets outlined in JCF operational plans and related purchasing activities in the related procurement plans for three years, 2015-16 to 2017-18.

There were misalignments with the targets in JCF’s operational plans and proposed purchasing activities in the related procurement plans.

Further, information that would allow us to establish clear linkages between the operational targets and the related procurement activities was insufficient.
For example, JCF’s operational plan for 2015-16 included the recruitment of 828 police officers as a major target.

However, in the context where the recruitment of additional officers would require additional uniforms, this expenditure requirement was not quantified in the procurement plan.

2.6 Further, in its 2017-18 operational plan JCF indicated the acquisition of arms, equipment and vehicles to facilitate the proper execution of policing duties as a major task and target.
However, the procurement activities specific to this were not quantified in the procurement plan as required by Appendix one in the Handbook of Public Sector Procurement Procedures.

The GOJ Procedures outline that the procurement plan should specify what to buy, how much/many to buy, from where to buy and how much to allocate for the acquisition of the goods and services (Appendix 2).
Page 17 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Two Procurement Planning Consulting Services (a) What services are required?

(b) When these services are required?

(c) What is the scope of these services?

(d) Are these services available locally or internationally?

(e) How much to allocate for payments?

Goods, General Services and Works (a) What to buy?

(b) When to buy?

(c) How much/many to buy?

(d) From where to buy?


(e) How much to allocate for payments?

Source: Appendix 1 GOJ Handbook of Public Sector Procurement Procedures 2.7 We noted that the procurement plans only provided a general breakdown of the description of goods and services and estimated cost; however, the unit of measure and quantity was not included.
As shown in Appendix 2, of 20 targets selected from major tasks outlined in JCF’s operational plans for 2015- 16 to 2017-18, specific to its core operation, we found no evidence of the description of the purchasing activities in the procurement plans relating to 10 targets.

While we saw descriptions relating to the other 10 and the budgeted costs, the quantity and unit of measure were not included.
Consequently, there was no explicit alignment between the operational and procurement plans to determine whether targets outlined in JCF strategic plan were achieved or if value for money was maximised.

Further, JCF did not consistently update its procurement plans with the status and outcome as well as to reflect readjustments to its purchasing activities in cases of emergency.
Page 18 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Page 19 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities At A Glance Assessment Against Criteria Systems and practices Use of competitive bidding as part of good procurement practice.

Strict adherence to the procurement guidelines.

Applying forward thinking approach in procurement management.
Criteria The use of the competitive bidding process is encouraged to promote transparency and opportunity to obtain quality goods and services at the best price.

JCF developed a culture of strict adherence to the procurement guidelines.

Analysing and assessing high- value recurrent expenditure areas and finding new and emerging savings cost opportunities in acquisition of quality goods and services.
Key Findings JCF frequently utilized the direct contracting and direct contracting emergency methodologies, which offers the least assurance that value for money was obtained.

We found instances in which JCF breached the procurement guidelines and acted in a manner that implied that there was an intent to circumvent the procurement rules.
Whereas JCF benefited from on-off cost savings initiatives implemented by the MoFPS, which are external, we found little or no evidence of internally driven considerations to explore cost savings the opportunities procurement process.
in MET the criteria Met the Criteria, but improvements needed Did not meet the criteria JCF procurement methodologies often undermined good practice and receipt of value for money 3.1 JCF’s major expenditures fall into four categories namely: fuel, clothing and uniform, meal for detainees held in police lock-ups as well as repairs and maintenance of facilities.
These expenditures amounted to $8 billion, representing 55 per cent of the goods and service expenditure, over the five-year period, 2013-14 to 2017-18.
JCF $8 Billion (55% of G&SE) Page 20 Fuel Detainees' meal Clothing and Uniform Repairs and Maintenance $5 Billion (34% of G&SE) $828 Million (6% of G&SE) $1.3 Billion (9% of G&SE) $842 Million (6% of G&SE) Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities 3.2 We analysed contracts relating to these procurements valuing $2.2 billion and noted that JCF awarded the majority of contracts, valuing $1.8 billion (81 per cent) using the direct contracting emergency and direct contracting methodologies, which offer the least assurance that value for money was obtain (Table 1).
However, we found that in a number of instances JCF could have negotiated on many of the purchases, ahead of time as it had prior knowledge of need.

Accordingly, the frequent use of these methodologies did not create an environment or assured transparency, competition and fairness in the procurement process.

Further JCF would not have satisfied itself that it always paid the best price for goods and services purchased under these categories, with due regard for quality.
JCF did not always provide the rationale for the use of the direct contracting and emergency procurement methodologies for us to determine if the rationale was consistent with the conditions specified in the Procurement Guidelines2.

The competitive bidding procurement methodology is widely encouraged as it facilitates transparency and the provision of opportunities to obtain quality goods and services at the best price.
Table 1: Analysis JCF Procurement Activities based on expenditure categories, 2013-14 to 2017-18 Expenditure Category Police uniform Meals for detainees Maintenance of Facilities Total Percentage Value of Contracts 2013-18 $’000 1,298,737 828,352 504,628 2,631,717 - Value of Contracts Analysed $’000 1,018,660 828,352 349,714 2,196,726 - Emergency $’000 67,136 0 98,326 165,462 8% Direct Contracting Emergency $’000 320,667 0 40,415 361,082 16% Source: AuGD’s sample analysis of JCF’s Procurement Limited Tender $’000 Direct Contracting $’000 235,629 395,228 0 828,352 29,513 181,460 1,245,441 424,741 19% 57% Competitive Tender $’000 0 0 0 0 0% The process by which JCF selected caterers to provide meals for detainees lacked transparency 3.3 JCF spent $1.4 billion for food and drink over the five-year period, with the greater portion, $828 million (59 per cent) spent on meals for detainees held in police lockups (Appendix 3).
We noted a trend increase in the expenditure for detainees’ meals from $148 million in 2013-14 to $174 million in 2015-16.

Following the imposition of a cap of $300 by the MoFPS for three meals a day, total expenditure on meals increased marginally in 2016-17 to $176 million, but fell to $170 million in 2017-18 (Figure 2).
However, while JCF maintained data on the number of detainees in lock-ups across the island, JCF did not aggregate 2 The Procurement Guidelines authorise the use of the direct contracting methodology for contracts valued up to $500,000.
The Guidelines allow for the use of the direct contracting methodology above this limit under certain circumstances including: where the procurement is of a confidential nature; the supplier has exclusive rights to supply the goods or services; standardizing equipment is available only from a specific source; for the purposes of research and reasons of extreme urgency.
The Guidelines allow for the use of emergency contracting in circumstances where the need for such procurement must be sudden, unexpected and a pressing necessity or exigency for public safety or property; extenuating circumstances in which the Procuring Entity is likely to incur or suffer financial loss if the procurement is not executed immediately; in any circumstance in which the National interest and/or national security considerations demand that the procurement be undertaken immediately; for business-sensitive procurement of goods, services or works in any extenuating circumstances in which the operating functions or business objectives of a Procuring Entity are likely to be significantly impeded, or placed in jeopardy if the procurement is not executed in a limited timeframe.
Source: GOJ Handbook of Public Sector Procurement Procedures Volume 2, Section 1.1.4, and 1.1.5.

Page 21 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities the data on an annual basis and evaluate the total cost for detainees’ meal at each police station.

This would have enabled JCF to utilize the appropriate procurement methodology to select caterers for the supply of meals.
In the absence of this information, we were unable to determine whether the expenditure for meals correlated with the number of detainees.
Figure 2 Expenditure for Detainees’ Meal, 2013-14 to 2017-18 0 0 0 $ ' 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - Exp 2013-14 $'000 147,525 2014-15 $'000 161,282 2015-16 $'000 173,628 2016-17 $'000 175,575 2017-18 $'000 170,342 Source: JCF financial d 3.4 Notwithstanding, the selection of caterers under two-year contracts was determined at the local police stations using the direct contracting methodology, despite the sums paid exceeded the threshold for the use of competitive bidding.
As shown in Appendix 3, caterers were paid annual sums up to $46 million.

JCF indicated that it selected caterers from within the communities where police lockups are located.

However, this was not an approved basis for using the direct contracting methodology over the competitive tender.
This longstanding practice of direct contracting of meal providers from the local community not only contravened Section 1.1.4 of the procurement guideline, but also undermined transparency, fairness and equal opportunity in the selection process.

This method of selecting caterers may also open the process to elements of impropriety and nepotism.

3.5 We reviewed the files for the 45 caterers on record for 2017-18 and saw contract agreements for 38, while there were no contracts for seven caterers.
Of the 45 caterers on record in 2017-18, we found no evidence that 20 had valid food handlers’ permit or Public Health Certificate issued by a Public Health Inspector.

Accordingly, JCF did not comply with the health and safety requirements for meal preparation.

Further, the contracts with caterers did not specify service standards.
Although the audit did not seek to determine the nutritional quality of the meals and the standard of preparation of caterers, given the necessity of value for money, we expected JCF to establish minimum performance standards as it relates to the quality of the meals and service requirements, as a basis for assessing the performance of caterers.
During our visits to eight police stations shown in Appendix 4, we observed inconsistencies in the dietary meal plan and service standards, which demonstrated that JCF did not monitor caterers to ensure compliance with public health guidelines.

Page 22 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities JCF, in its response noted, “The identified gaps are acknowledged and agreed to be significant.
In this regards, the organization is moving aggressively towards improving the system of providing meals to detainees in the short-term” Needs assessment and forward planning could better aid JCF’s procurement of police uniforms 3.6 Expenditure for police uniforms and clothing by the JCF amounted to $1.3 billion over the five-year period, the second single largest expenditure area under purchase of goods and services.
JCF provides three sets of uniforms annually to existing police officers and new recruits upon enlistment in training.

We expected JCF to assess the current number of police officers and expected new recruits, to inform the amount of uniforms required each year.

When planning for uniforms for new recruits, the expected date of enlistment in training indicated in JCF’s corporate and operational plans should at minimum, be the target date for the delivery of all uniforms to the new recruits.
An effective procurement plan should therefore be developed by taking this date and working backwards, by integrating the required lead times for each step – preparation, bidding, evaluation and contracting.

This basic approach allows for forward planning in ensuring that JCF fulfils the need for uniforms in a timely manner and at a reasonable cost.
3.7 However, despite acquisition of uniforms being an annual activity and knowledge of the numbers of recruits and current establishment, we found that JCF did not properly plan its procurement for uniforms resulting in it utilizing, more often, the direct and emergency contracting methodologies, which would have limited its ability to obtain uniforms at best available price.
Over the period, 2013-14 to 2017- 18, JCF undertook 166 procurement transactions for the manufacturing of uniforms utilizing the emergency, direct-emergency and direct procurement methodologies for 85 (51 per cent) of the transactions.

JCF used the limited tendering methodology for 81 (49 per cent) of the transactions and at no time did it utilize the competitive bidding methodology.
We found no evidence that JCF conducted a needs assessment to quantify the annual uniform requirements based on the expected number of new recruits as indicated in its operational plans and the existing cadre of police officers (Table 2).
Table 2 Analysis of annual uniform needs assessment conducted by JCF, 2013 - 2018 Uniform Needs Assessment Year 2013-14 None seen 2014-15 None seen 2015-16 None seen 2016-17 None seen 2017-18 None seen Additional Stock at Year end Requirement None seen Not determined None seen Not determined None seen Not determined None seen Not determined None seen Not determined No.

Uniformed Procured 184,017 72,425 351,958 198,356 139,331 946,087 No.
of Procurement Transactions 21 25 56 46 18 166 Procurement Methodology Used* DC 2 9 22 13 6 52 E DC-E - 3 11 10 7 31 LT 19 12 22 23 5 81 1 1 - - 2 CB - - - - - - *E – Emergency, DC-E - Direct Contracting Emergency, DC - Direct Contracting, LT – Limited Tendering, CB - Competitive Bidding Source: AuGD’s Analysis Page 23 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities 3.8 In the absence of effective forward planning, JCF made multiple transactions in purchasing uniforms (Table 3), without assessing the option of procuring uniforms in larger quantities to obtain economies/benefits from bulk discounts.
The JCF could benefit from improved administrative efficiencies and cost reduction- discounts- through bulk purchases.

Table 3 Sample analysis of uniform procurement transactions, 2013 - 2018 Details Number transaction examined Value of Procurement Actual Exp.
for the period Per cent (%) examined 2013-14 21 $65.6m 175.2m 37 2014-15 25 $76.5m 98m 78 2015-16 45 $335.6m 394.8m 85 2016-17 46 $422m 507.1m 83 2017-18 18 $118.7m 123.3m 96 Total 155 $1.018b 1.298b 78 Source: JCF Expenditure Report JCF utilized 3.9 We reviewed 155 procurement transactions each with value over $500,000 and in aggregate, $1 billion or 78 per cent of the total uniform expenditure for the five-year period.

JCF spent $395.2 million (39 per cent) by utilizing the limited tender methodology.
JCF ascribed the purchase of police uniforms as a sensitive area based on security considerations creating the need for it to limit the number of manufacturers suppliers.

to pre-qualified four Notwithstanding, the emergency and direct contracting methodologies for the majority of the transactions valuing $623 million (61 per cent).
However, JCF could have utilised tender methodology, among the pre-qualified suppliers, which would have provided the opportunity not only to encourage transparency in the awarding of contracts, but also to benefit from its advantage as a bulk purchaser through competitive means.

The practice engaged by JCF neither provided the confidence nor evidence it acted with the intention to receive the most economical outcome.
This in the context where the JCF could have included forward planning as part of the procurement process; recognising that, the direct and emergency contracting methodologies offered the least assurance of value for money.

limited the 3.10 JCF could not provide evidence that its predominant use of the emergency and direct contracting over the limited tendering methodologies was in keeping with conditions outlined in the GOJ Procurement Guidelines.
Further, we found instances where JCF entered into contracts with the four pre-qualified suppliers on the same date using the direct contracting methodology, which might imply contract splintering to circumvent the procurement guidelines.
For the manufacturing of uniforms, JCF made multiple purchases of imported uniform materials from a local supplier using direct contracting, without Page 24 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Emergency , $67,000 , 7%Direct Contracting/ Emergency, $320,600 , 31%Direct Contracting , $235,000 , 23%Limited Tender , $395,200 , 39%Procurement methodologies for uniform 2013-18 Part Three Procurement Activities assessing the level of savings it could obtain from purchasing uniform materials directly from the overseas suppliers.
JCF noted that going forward, the establish practice is to procure sufficient uniform supplies to meet the yearly demand using the competitive tender process.
JCF did not always demonstrate it obtained repairs and maintenance contracts at the best price 3.11 There are three types of maintenance activities namely, preventative maintenance, which includes routine and recurring works, corrective repairs for non-emergency deficiency and emergency corrective repairs for problems that pose an immediate threat to building security and public safety.
Attaining the correct balance among these activities is critical for an efficient and cost effective maintenance programme.

It is widely accepted that the use of preventative maintenance is the most economical.

3.12 JCF spent a total of $842 million to conduct repairs and maintenance of facilities, during the period 2013-14 to 2017-18, and awarded the majority of the contracts using procurement methodologies, which did not provide the opportunity to satisfy itself that it obtained the best price.
Consequently, JCF could not demonstrate that its repairs and maintenance activities were cost-effective, given that expenditure was mainly incurred to conduct unplanned corrective and emergency repair works.

3.13 Of the 165 contracts reviewed, valuing $349.7 million related to the repairs and maintenance of police stations, JCF awarded 161 contracts valuing $320 million by utilizing the direct contracting and direct contracting emergency procurement methodologies (Table 4).
This value represented 92 per cent of the expenditure for the contracts reviewed.

JCF’s reliance on the direct and emergency procurement methods demonstrated a lack of transparency in the award of contracts.

JCF utilized the limited tender method of procurement for four contracts valuing $29.5 million or eight per cent of the total expenditure examined for the five-year period.

There was no indication that JCF utilized the competitive procurement method, which facilitates the securing of best value.
Table 4 Analysis of repairs and maintenance contracts awarded above $500,000, 2013 - 2018 Details No.

of Contracts examined Values of contracts examined % No.
of Contracts % Value of Contracts Emergency 29 $98.3M 18% 28% Source: JCF Expenditure report Direct Contracting Emergency 12 $40.4M 7% 12% Direct Contracting 120 $181.4M 73% 52% Limited Tender 4 $29.5M 2% 8% Competitive Bidding 0 $0.00 0% 0% Total 165 $349.7M 100% 100% 3.14 JCF did not maintain a ‘facilities maintenance register’, which at minimum should detail the physical condition, functionality and cost requirement for the maintenance and repair of its facilities.
Therefore, JCF was unaware of the extent of the overall condition and functionalities of all its facilities, the majority of which are police stations.

This prevented JCF from developing a structured routine and recurring work Page 25 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities plan, which constitutes an essential prerequisite to ensure the efficient and cost effective repairs and maintenance of its facilities.
JCF indicated that, through the Ministry of National Security, it is working to finalize a design for scheduled maintenance and repairs, with buildings and properties scheduled for routine repairs within a three-year cycle as a minimum standard.

JCF implemented fuel cost containment measures although not all were monitored for effectiveness 3.15 JCF’s budget allocation included $5.5 billion for fuel, oil and lubricant between 2013-14 and 2017- 18.
JCF used $5 billion to purchase 39 million litres of fuel to operate its fleet of vehicles, mainly for core operational purposes.

Fuel is the largest single expenditure area for JCF under the purchase of goods and services.

The volume purchased is directly influenced by the nature, extent and unpredictability of police operations.

Accordingly, all other variables, such as the vulnerability of the petroleum price that influence costs, are outside the control of JCF.
Given these variables, managing the procurement and usage of fuel can be difficult, but having adequate cost containment and fuel utilization measures could contribute to JCF spending less on fuel.

3.16 Over the period, 2013-14 to 2017-18, JCF has gained savings averaging approximately $417 million from retail fuel (Table 5) and $10 million from bulk fuel (Figure 4) purchased under framework agreements between the MoFPS and petroleum marketing companies.
The agreement for the purchase of fuel for Government vehicles at a rate of five dollars below the regular mark-up, was implemented in January 2009.
Table 5 Analysis of Savings under Framework Agreement, 2013-14 to 2017-18 Retail Fuel Quantity (Litre) 7,732,162 7,554,593 7,701,116 7,158,868 6,412,026 36,558,765 Year 32013-14 2014-15 2015-16 2016-17 2017-18 Total Original Amount* ($’000) 1,006,294 995,363 932,080 904,855 933,428 4,772,020 Discounted Amount ($’000) 962,327 933,830 833,865 789,171 835,628 4,354,821 Savings ($’000) 43,967 61,533 98,215 115,684 97,800 417,199 *Original Amount: Price before discount is applied.
Source: Information provided by JCF’s Conservation and Fleet Management Unit 3.17 Petroleum marketing companies either import or purchase fuel from the state-owned oil refinery at the ex-refinery price and re-sells it to JCF, in retail and bulk quantities, at the agreed discounted rate.
The majority, 37 million litres (95 per cent), of the fuel JCF purchased was in retail quantities at petrol stations island-wide and the other two million litres (six per cent) related to bulk purchases, over the five- year period (Figure 3).
Page 26 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Part Three Procurement Activities Figure 3 Analysis Purchase of Retail and Bulk Fuel Purchase, 2013-14 to 2017-18 Bulk Fuel Qty (Litre) 5% Year 2013-14 2014-15 2015-16 2016-17 2017-18 Total Fleet No.

1,455 2,067 2,067 2,123 2,271 - Retail Fuel Qty.

(Litre) 7,732,162 7,554,593 7,701,116 7,158,868 6,412,026 36,558,765 Bulk Fuel Qty.

(Litre) 764,002 589,068 331,905 250,082 184,113 2,119,170 Total Qty.
(Litre) 8,496,164 8,143,661 8,033,021 7,408,950 6,596,139 38,677,935 Bulk % 10 8 4 4 3 5 Retail Fuel Qty (Litre) 95% Source: Information provided by JCF’s Conservation and Fleet Management Unit JCF operates six bulk storage facilities in Kingston and St. Andrew.

We noted that bulk fuel litres 3.18 purchases declined sharply to 184,113 litres in 2017-18 from 764,002 in 2013-14 (Figure 4) and JCF partly attributed the reduction to down time experienced at three of its bulk fuel locations due to repairs.
JCF, as part of its fuel conservation activities action plan for 2017-18, considered the expansion and modernisation of bulk facilities especially in police divisions where the larger amount of its fleet is assigned3.

Twenty-five per cent of JCF’s vehicle fleet was assigned to Kingston and St. Andrew, 14 per cent to St. Catherine and 10 per cent to St. James.
3 Report from the vehicle management unit (June 7, 2017) Page 27 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Kingston129 Vehicles 10%St.

Andrew 194 Vehicles 15%St.

Catherine 176 Vehicles 14%St.


James 133 Vehicles 10%Other Ten Parishes 645 Vehicles51%Analysis of Vehicle Deployment as at July 2018 Figure 4 Analysis Bulk Fuel Purchase, 2013-14 to 2017-18 Part Three Procurement Activities Source: Information provided by JCF’s Conservation and Fleet Management Unit 3.19 Considering the size of JCF’s fleet and the nature and extent of its operations, JCF recognised the need to heighten controls and monitoring over the usage of its vehicles.
JCF implemented the once daily refuelling limit for each service vehicle in July 2011, wherein vehicles are assigned gas cards and are programmed to allow fuelling once daily.

Since then, there was a declining trend in the volume of retail fuel purchased, moving to 6.4 million litres in 2017-18 from 7.7 million litres in 2013-14 (Figure 5).
Figure 5 Analysis Retail Fuel Purchase, 2013-14 to 2017-18 Retail Fuel Qty (Litre) 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2013-14 2014-15 2015-16 2016-17 2017-18 Year 2013-14 2014-15 2015-16 2016-17 2017-18 Total Retail Fuel Qty.
(Litre) % 7,732,162 7,554,593 7,701,116 7,158,868 6,412,026 36,558,765 -2 2 -7 -10 Retail Fuel Cost ($’000) 962,327 933,830 833,865 789,171 835,628 4,354,821 % -3 -11 -5 6 Average Cost (Per/Litre) ($) 124 124 108 110 130 119 Retail Fuel Qty (Litre) 7,732,162 7,554,593 7,701,116 7,158,868 6,412,026 Source: Information provided by JCF’s Conservation and Fleet Management Unit 3.20 Subsequently, JCF implemented a register of the tank capacity for all operational vehicles to aid in monitoring fuel purchase for each vehicle by comparing volumes purchased against the vehicle’s tank capacity.
JCF further introduced reconciliation of refuelling transaction receipts with Jamaica Automobile Association (JAA) System and assigned fuel baseline efficiency ratios for different types of vehicles within its fleet, to provide an awareness of vehicles’ operational efficiency.
Monitoring vehicles fuel usage against the established baseline ratios serves to ensure the efficient use of fuel for the intended purpose and to inform the systematic procurement of vehicles to replace those operating below the baseline fuel Page 28 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 2013-142014-152015-162016-172017-18Bulk Fuel Qty (Litre)764,002589,068331,905250,082184,1130100,000200,000300,000400,000500,000600,000700,000800,000900,000Bulk Fuel Qty (Litre) Bulk Fuel Qty.
Average Cost per Litre (without discount)Bulk Fuel Cost (without discount)Average Cost per litre (with discount) Bulk Fuel Cost (with discount) Savings (based on discounted price)(Litre) ($)($'000)($)($'000)($'000)ABCDEC-E2013-14764121.292,597 11688,9113,686 2014-15589123.272,565 11869,7042,861 2015-16332109.236,254 10434,4711,783 2016-17250110.227,550 10526,3481,202 2017-18184129.223,773 12422,811962 Total 2,119119252,739 114242,24510,494 Year efficiency ratio.
JCF sets an efficiency ratio of four and six kilometres per litre of fuel consumed for motor cars manufactured before 2017 and after 2008, respectively.
Part Three Procurement Activities Once Daily Refuelling Limit Tank Capacity Register Reconciling refuelling transaction receipts with JAA System Fuel Efficiency Ratio 3.21 JCF indicated that these controls mechanisms are monitored at the divisional level; however, JCF did not provide evidence that the monitoring of these controls were being consistently undertaken and discrepancies periodically reported for appropriate response.
For example, we saw no evidence of periodic reconciliation conducted between the refuelling transaction receipts and JAA System.

Further, JCF is yet to develop and maintain a fuel efficiency inventory of all fleet vehicles and the reported tank capacity register.

The absence of efficient monitoring of these control mechanisms and reporting of the results would prevent JCF from assessing their effectiveness.
Page 29 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Appendices Appendix 1 Building blocks of Value for Money (VFM) Page 30 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 ECONOMYis keeping the resources costs low.

The resources used should be available in due time, in appropriate quality and quantity and at the best price.EFFICIENCYis getting the most from available resources.
It is concerned with the relationship between resources employed, conditions given and results achieved in terms of quality, quantity and timing of outputs and outcomes.EFFECTIVENESSis meeting the objectives set.

It is concerned with attaining the specific aims or objectives and/or achieving the intended results.
Appendix 2 Operations Plan major tasks and targets - 2015-16 to 2017/2018 Appendices Operation Plan 2015 Strategic Priority: Improvement in Management Efficiency and Resource Utilization Major Tasks Procurement Plan Ensure the optimal use of the JCF resources.

Targets Ratify and implement JCF Fleet management system and protocols 30.09.2014.

Implement/deliver training on Microsoft productivity tools to 350 officers at varying levels by 31.12.2014.

Police Network upgraded.


PMAS Electronic Software developed.

Establish JCF ICT Branch by 30.09.2014.

Recruit and train 728 JCF and 100 ISCF applicants by 31.12.2014.

Number of persons trained in using the electronic station diary system.

100% digitization (upgrade) of Police Radio Network by 31.12.2014.

Identify and acquire equipment to satisfy JCF’s information technological needs.

Merger of PNCC and Telecom Division to form ICT branch.

Enhance fleet management systems and protocols.


Increase strength of JCF, ISCF and Rural Police.

95% upgrade the Police Radio Network by 31.12.2015.

Develop and implement Phase one (1) of PMAS Electronic software by 31.12.2015.

Design and implement electronic data- management systems/ solutions in all geographic division and operational formations by 31.12.2015.
Operation Plan 2016 Strategic Priority: Improvement in Management Efficiency and Resource Utilization Major Tasks Increased use of CCTV in high public utilization spaces ( transport centres, commercial/ market districts etc.).

Acquisition and distribution of motor vehicles, boats, motor bikes, bicycles etc.

Acquisition of arms, equipment, and vehicles to facilitate the proper execution of policing duties.
Operation Plan 2016/2017 Strategic Priority: Improvement of Public Safety, Confidence and Trust Major Tasks Increased use of CCTV in high public utilization spaces ( transport centres, commercial/ market districts etc.)

Acquire office furniture to accommodate additional administrative staff.

Undertake building construction and improvements at police facilities.

Targets Procure at least 20% of CCTVs to be used in determined public space by 3rd Qtr.

2016/2017.
2016/2017.

Targets Procure at least 20% of CCTVs to be used in determined public space by 3rd Qtr.

2016/2017.

Furniture and equipment acquired.

Number of construction projects completed within agreed time lines (65%).

A 20% increase in arms, vehicles and equipment acquired.

10% increase in acquisition of all modes of transportation by 31.03.2017.
Procurement Plan Procurement Plan Page 31 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Appendices Operation Plan 2015 Strategic Priority: Improvement in Management Efficiency and Resource Utilization Major Tasks Procurement Plan Targets Number of members trained in various courses.

At least 40% of work force exposed to job related training by 31.03.2017.

Targets Increase the delivery of training courses.


Operation Plan 2017/2018 Strategic Priority 1: Prevention and Reduction of serious, Violent and Organized Crimes Major Tasks Acquisition of arms, equipment, and vehicles to facilitate the proper execution of policing duties.

Expand the use of video surveillance /CCTV systems.

Identify and acquire equipment to enhance JCFs information technological capabilities.

Refurbish and modernize the technology and infrastructure at Police Control island wide.
Improve the technological competencies of the work-force.

None identified.

Expansion of Avaya telephony system island- wide by 31.08.2018 and type of technological equipment acquired.

At least 60% of staff exposed to training in ICT systems being used by the JCF.

Upgrades at the Head Quarters and Area control centres.

Control centres equipped with modern technology.

Number of arms, vehicles and equipment acquired.
Clearly Linked 0 Not clearly linked and quantified 10 Not seen 10 Page 32 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Appendix 3 Payments made to Caterers of Detainees' Meal 2013-14 to 2017-18 Appendices Caterers Caterer 1 Caterer 2 Caterer 3 Caterer 4 Caterer 5 Caterer 6 Caterer 7 Caterer 8 Caterer 9 Caterer 10 Caterer 11 Caterer 12 Caterer 13 Caterer 14 Caterer 15 Caterer 16 Caterer 17 Caterer 18 Caterer 19 Caterer 20 Caterer 21 Caterer 22 Caterer 23 Caterer 24 Caterer 25 Caterer 26 Caterer 27 Caterer 28 Caterer 29 Caterer 30 Caterer 31 Caterer 32 Caterer 33 Caterer 34 Caterer 35 Caterer 36 Caterer 37 Caterer 38 Caterer 39 Caterer 40 Caterer 41 Caterer 42 Caterer 43 Caterer 44 Caterer 45 Caterer 46 Caterer 47 Page 33 2013-14 $ 2014-15 $ 2015-16 $ 2016-17 $ 45,702,695 11,240,880 11,204,710
0 0 2016-17 $ 2017-18 $ Total $ Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Caterers Caterer 48 Caterer 49 Caterer 50 Caterer 51 Caterer 52 Caterer 53 Caterer 54 Caterer 55 Caterer 56 Caterer 57 Caterer 58 Caterer 59 Caterer 60 Caterer 61 Caterer 62 Caterer 63 Caterer 64 Caterer 65 Total 2015-16 $ 2017-18 $ 2016-17 $ 2013-14 $ 0
0 594,530 368,180 101,535 0 0 0 0 0 0 0 0 0 0 2014-15 $ 513,435 192,600 582,805 611,155 0 115,715 0 187,265 0 0 282,815 0 11,330 0 0 0 0 0 Appendices Total $ 1,194,675 1,033,910 962,390 945,530 930,990 808,315 626,160 557,900 446,555 390,825 388,465 154,725 146,825 144,080 123,100 106,340 12,625 11,295 828,352,067 Page 34 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019 Appendix 4 Detainees’ Meal Served at Selected Police Lockups on day of visit Appendices Date of Visit 20-Jun-18 N0.
1 Police Stations Half Way Tree 27-Jun-18 Central 27-Jun-18 Denham Town 28-Jun-18 Portmore 28-Jun-18 28-Jun-18 28-Jun-18 2-Jul-18 Central Village Constant Spring Duhaney Park Spanish Town Lunch Chicken-back, rice, special diet veggie chunks , dumpling and kool-aid not seen Breakfast Dumpling/ dinner roll and tea Dumpling/ dinner roll and tea not seen Pak choi and chicken and kool- aid not seen Cabbage & salt fish with g/banana & kool-aid tinned mackerel ,dumpling & boiled banana & kool-aid Chicken-back, rice and juice Chicken, dumpling, rice and juice Tea & Peg Bread Not seen Fritter & tea Not seen Not seen Occupancy on date of visit 158 Supper 1 Dumpling Capacity 90 not seen 176 169 Dumpling 37 not seen Bulla Crackers and biscuit Biscuit and Drink Bulla 65 15 15 12 46 36 92 7 30 30 75 Page 35 Performance Audit - Procurement Management Jamaica Constabulary Force (JCF) April 2019