Transcript Public Procurement Reforms

Public Procurement Reforms
By. Naeem Abbas
PPRA
Definition of Government
Procurement
 Procurement by government agencies
Public Sector Organizations
•With major Govt. Equity
•With minor Govt. Equity
•Under control of Govt. (No Equity)
•With other forms of Govt. funding
Objectives of Procurement Reforms
Economy (Value for money)
Efficiency
Transparency
Accountability
Competitiveness
Fairness
Past Regulatory Environment
Procurement under GFR
Procurements by Corporate Sector
Procurements by Statutory Bodies
Classified Procurements
Present Regulatory Framework
Enabling
Legislation
PPRA Ordinance 2002
Subsidiary
Legislation
Public Procurement Rules, 2004
•Public Procurement Regulations
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Steps Involved in Redesigning New
Procedures
Study of Existing Procedures
Identification of Redundant & Non -
Transparent Procedures
Redesigning New Procedures
Emergency Procedures
Procurement Cycle
Contract
Administration
Planning/Designing
specifications
Payments
Pre-qualification
Grievance
Redressal
Contract
Award
Solicitation of
Bids
Bids opening
and Evaluation
Procurement Planning
Planning
Limitation on splitting or regrouping
Specifications
Approval Mechanism
International Commitments
Language
Pre-qualifications of Suppliers
Relevant experience
Process
Qualification of Suppliers
Disqualification of Suppliers
Black-listing of Suppliers
Solicitation of Bids
Methods of Advertisement
• From Rs. 40,000 to Rs. 1.0 (Million)
• Exceeding Rs. 1.0 (Million)
Response Time
• ICB-30 Days
• NCB-15 Days
Exceptions
• National Security
• Intellectual Property
Method of Procurement
Open Competitive Bidding
Submission of Bids
Bidding Documents
• Precise and unambiguous
• Invitation to Bid
• Instructions to Bidders
• Form of Bid
• Form of Contract
• General or special conditions of Contract
• Specifications and drawings or performance criteria
(where applicable)
Bidding Documents (Contd.)
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List of Goods or bill of quantities (where applicable)
Delivery time or completion schedule
Qualification criteria (where applicable)
Bid evaluation criteria
Format of all securities required (where applicable)
Details of standards (if any)
Any other detail not inconsistent with Rules
Method of Procurement (Contd.)
Reservations and Preference
• Reservation in accordance with the policy of the
Federal Government
• Domestic preference
Bid security
Bid validity
• Time to be specified in Bidding Documents
Extension of time
Procedures of Open Competitive
Bidding
Open Competitive Bidding, Principal Method
Single Stage. Two Envelope Procedure.
Two Stage Bidding Process.
• Technical proposal without price for uniform
specifications.
• Price proposals on the basis of uniform technical
specifications.

Two Stage Two Envelope Bidding
• First stage technical proposal & financial proposal
• Second Stage – Revised Technical Proposal
–
Supplementary Financial Proposal.
Alternative Methods of
Procurement
Petty Purchases, below Rs. 10,000
Request for Quotations, below Rs. 40,000
Direct Contracting
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Acquisition of spare parts or supplementary services
Provided not available from alternative sources
Only one manufacturer or supplier exists
Change of supplier would lead to incompatibility or
disproportionate technical difficulties
• Repeat orders not exceeding 15%
• Emergency
Alternative Methods (Contd.)
Negotiated Tendering
• Supplies for supporting a piece of research,
experiment, study, particular development
• For technical, artistic, protecting intellectual
property rights
• Extreme urgency
• Record reasons and justifications for resorting to
N.T
Bid Opening and Evaluation
Opening, after min 30 minutes
Evaluation
Rejection
Re-bidding
Announcement of Evaluation Report
Contract Award
Acceptance of Bid
Integrity Pact, exceeding Rs. 10 (m)
Performance Guarantee
Limitation on Negotiations
Confidentiality
Grievance Redressal
Pre-award
Post-award
Payments
On account Payments
Enforcing the Contract
• Issuing Purchase Order only
• Signing the Contract
Closing of Contracts
• Resolution of Contractor’s Claims
• Completion of Project Reports
• Historical Files to Retain: Requirements of Auditor
General
• Post Completion Evaluation
Contract Administration
Execution & Management of Contracts
Appropriate Funds Availability
Payments to Contractors
Tracking Supply Schedules
Management of changes/variations to
Procurements
Monitoring
Internal Pre/Post Audit Procedures
Audit by the Auditor General
Procurement Audits by Private Sector
Auditors
Thank You