Transcript Annex U - Post review of procurement

Post Review of Procurement
by
World Bank
Key Observations
States covered:
Assam
Karnataka
Maharashtra
Uttar Pradesh
Key Observations
•
Key observations shared with the concerned
States on 28th July 2011 for comments.
Post reviewed 130 contracts, at SPO and DPO.
Summary of Observations
ASSAM
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Contract amount for procurement of school bag
was ` 106.30 lakh but the payment made for
` 454.90 lakh without issue of repeat order or
revision of purchase order. In excess of open
tender threshold of US $ 300,000 equivalent
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Key Observations
 Not maintained bidding period of 30 days for
open tender of procurement of sitting mat
 Exceeded the threshold of US$ 30000 for single
contract for the purchase of 10 KVA generator
under DGS&D Rate contract.
 Computers and its accessories amounting to
` 349.55 lakh procured under DGS&D Rate
contract instead of open tender.
 Procurement of digital camera under limited
tender was made inviting 4 quotations but 2
bidders were having the same address.
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Key Observations
 Entire procurement cycle for the purchase of
laptop was completed within two days.
 Two bidding documents issued on the same day
for purchase of water bottle for Class I & IV
(` 184.78 lakh) and Class III & IV (` 171.28 lakh)
which exceeded the open tender threshold of US
$ 300,000 equivalent.
 Delivery details and invoice details not made
available during review for printing and supply of
evaluation of workbooks for Class V.
 Procurement process was not reviewed as per
TOR for hiring of external auditors and internal
auditors.
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Key Observations
 Fraud and corrupt (F&C) indicator as the awadee
is one among the related quotations submitted
and effectively reduces the number of quotations
for purchase of wooden cots.
 Not stipulated rationale delivery period for
purchase of stationery.
 Payment was made based on provisional bill and
delivery period not stipulated for purchase of
generator period.
 Delay in supply of stationery items.
 Entire procurement cycle was compelted within 3
days and unrealistic delivery period for supply of
furniture ,TLM and generator.
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Key Observations
 All 3 quotations were in similar format and same
hand writing.
 The dates issued for work order and delivery /
invoice / payment dates on the same day.
KARNATAKA
 Restrictive tender clause and subjective
evaluation.
 Delay in delivery / supply of material.
 Not indicated date of opening of quotation in RFQ
 Purchase order does not indicate terms and
conditions
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Key Observations
 Single tender method adopted instead of limited
tender.
 Possible F&C for purchase of UPS .
 Delay in issue of work order defeats the purpose
of limited tender.
 Invoice and delivery date before work order date.
 Bid security DD having sequential numbers.
 L1 and L2 share same telephone numbers.
 In another case, L1 and L3 share same telephone
numbers.
 Date of delivery not available in file.
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Key Observations
 Date of delivery, invoice details, payment details
not available in file.
 Brand specific procurement for Samsung Air
Conditioner and V-Guard stabilizer.
 Details not mentioned in RFQ and PO.
 Deliverables on statutory auditors and internal
auditors not complied.
 Quantity of mathematics textbooks increased by
30%.
 RFP and TOR are included qualification and
evaluation criteria for appointment of District
Engineers and Block Engineers.
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Key Observations
MAHARASHTRA
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Splitting of requirements of computers to avoid open
tender.
Purchase order under DGS&D Rate Contract was
placed 2 months before the expiry of the rate contract
resulting in procuring computers of one year old
specifications.
Contract copy for purchase of Microsoft Office 2007
not available in the file.
Monthly progress report on 3rd Party evaluation of
civil works does not provide number of works
completed in time, cost savings achieved or other
parameters like time / cost overruns and the area
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requires attention from MPSP or the district engineer.
Key Observations
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Contract signed, date of invoice and date of cheque
are on the same day.
Completed procurement cycle within one day.
 Quotations from 2 firms are on the same hand
writing .
 Followed Zilla Parishad Procurement Procedure
instead of FM&P Manual.
 Hearing aid procured under single tender basis.
 Delay in delivery of green boards since December
2008.
 In the absence of any stipulation in the contract
agreement 60% payment was released to the
external auditor.
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Key Observations
UTTAR PRADESH
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Procured items not taken into fixed asset register and
not mentioned the warranty as comprehensive.
Minor error in the purchase order/invoice amount and
amount paid.
Failure to mature the procurement process, resulted
in non-availability of 3rd Party consultants for civil
works quality.
Entire procurement cycle was completed from 6
March 2010 till 31st March 2010 but the goods received
on 1st May 2010.
Single tender adopted for construction of composite
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schools (` 35.62 lakh).
Key Observations
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Invoice dated 31st March 2010 but delivered on 27th
April 2010 resulting in delay in delivery.
Entire procurement cycle was completed with 2 days.
Stipulated unrealistic delivery period.
Not stipulated warranty terms in PO.
Liquidated damages not charged though stipulated in
PO.
Invoice date prior to the placement of PO and
payment.
Tower Server not installed since its receipt entails to
under utilization for the procured goods.
Procured goods were not traced in the location (0.8
KVA and 1 KVA UPS)
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Key Observations
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Cheques were drawn and kept ready before the
placement of purchase order.
50% payment was made upfront for maintenance of
computers.
Hand-pumps to various schools procured on single
tender basis.
Confirmation on the receipt of hand pumps from BRC
not available in file.
Substantial delay in delivery and payment
Computer purchased received on 28-5-2010 but not
found installed during the site visit.
Mismatch between specified in PO and supplied.
Upon noticing and communicating, the items were
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found not replaced (based on site inspection)
Key Observations
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Installation of Server not done and however, certified
by the computer operator for making payment
Procurement procedure followed for primary kit was
not in line with Para 115.20, 21 and 22
Stringent penal action proposed in the tender
document
Quality assurance committee commented on the
quality of text books, however, no deduction
recommended.
Delay in delivery and completion of text books
Delay in payment of text books
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