Insights into Public Procurement: Rules and Challenges
"Explore the challenges and regulatory frameworks of public procurement as outlined by Sukesh Kumar Sarker, Additional Secretary of the Ministry of Health and Family Welfare, in the Rules,2008 document."
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Presentation Transcript
A Glimpse on Public Procurement Rules,2008 Sukesh Kumar Sarker Additional Secretary Medical Education and Family Welfare Division Ministry of Health and Family Welfare
Session Contents Challenges in Public Procurement Practice Regulatory Frameworks of Public Procurement Characteristics of PPR,2008 Important Definitions Discussion on some Important Rules
Challenges in Public Procurement Ensuing Value for Money Compliance of PPA,2006 and PPR,2008 Ensuring Transparency, Fair, Competition, Equality Stakeholders Interest Sustainable Developments Procurement Competence
Challenges in Public Procurement Procurement Competence for : - Setting Objectives - Developing Procurement Strategy - Positioning Customer of Choice Talent Scarcity Fear for negative Publicity Global Sourcing
Challenges in Public Procurement Inadequate Financial Resources Excessive Documentation Adverse selection of Supplier/Contactor/Consultant Application of range of legal aspects Lack of Structured Procurement Unit Insufficient Internal Control Policies Tendency of Bidding Community to go to Court
Regulatory Frameworks Primary Legislations - PPA, 2006 Secondary Legislations - PPR,2008, - e-Gp Guideline,2011
Amendments to PPA,2006 15 July 2007 16 June 2009 12 November 2009 July 18 2010 01 August 2016
Amendments to PPR,2008 12 August 2009 29 March 2011 01 April 2012 24 November 2016 10 June 2018
PPA-2006 & PPR-2008 Total number of Sections 73 (PPA) Total number of Rules 130 (PPR) Total number of Schedule 14 Total number of STDs/SRFP 37 [ PG-12, PW-11, PS-14]
Characteristics of PPR,2008 Decentralized Competence Standardized Performance Enhancing Competition Post-Procurement Review Post-Qualification Complaint Mechanism
Objects of Procurement Goods and Related Services Woks and Physical Services Services Consulting Services Non-Consulting Services - Related Services - Physical Services - Stand alone Physical Services - Outsourcing
Important Definitions (Rule-2) Public Fund Procuring Entity (PE) Head of Procuring Entity (HOPE) Approving Authority Authorized Officer(Rule-2)
PPR-2008 Rule-7 : Constitution of Tender or Proposal Opening Committees Rule-8 : Constitution of Tender/Proposal Evaluation Committee Rule-11 : Approval of Tender/Proposal Rule : Delegated Procurement Rule-16 : Preparation of Procurement Plan etc. Rule-17 : Splitting of an Object of Procurement Rule-19 : Determination of Tender Validity Rule-22 : Tender Security Rule-25 : Forfeiture of Tender Security Rule-27 : Performance Security
PPR-2008 Rule-29 : Procedures for Preparation of Technical Specification Rule-33 : Rejection of all Tenders/Proposals/Quotations Rule-36 : Approval Process Rule -43 : Maintaining Records of Procurement Rule-45 : Procurement Post Review Rule-54 : JVCA Rule-56 : Right to Complain Rule-61 : Use of Open Tendering Method Rule-63 : Use of Limited Tendering Method Rule-65 : Use of Two Stage Tendering Method
PPR-2008 Rule-68(KA) : Use of One Stage Two Envelope System Rule-69 : Use of Quotation Method Rule-74 : Direct Procurement Method Rule -75 : Form of Direct Procurement Rule-76 : Use of Direct Procurement Rule-78 : Variation of Order and Extra Work Oder Rule-83 : Use of Open Tendering in International Competition Rule-89 : Framework Contract Rule-90 : Advertisement Rule-97 : Opening of Tender Rule-98 : Tender Evaluation etc.
PPR-2008 Rule-99 : Negotiation Rule-100 : Post-Qualification Rule-103 : Methods for Procurement of Intellectual and Professional Services Rule -104 : Other Methods for Procurement of Intellectual and Professional Services Rule-113 : Submission of EOI Rule-115 : EOI Evaluation and Short-listing Rule-117 : Issue of RFP Rule-118 : Proposal Evaluation Rule-119 : Technical Proposal Evaluation Rule-120 : Financial Proposal Evaluation
PPR-2008 Rule-127 : Professional Misconduct Rule-128 : E-GP
Rule-7 : TOC 3 member committee, 1 from TEC, 2 from P.E Approval by HOPE/Authorized Officer/Approving Authority, if below HOPE Chairperson, Member, Member Secretary Fee like TEC
Rule-8 : Constitution of TEC/PEC Minimum 5 and generally not more than 7; 2 members are mandatorily external External members from Ministry/Division beyond the Ministry of P.E Presence and signature of 5 members inclusive of 1 external member mandatory Approving Authority(AA) will approve TEC/PEC In case the AA is Ministry or Recommending Authority is CCGP, or Board of Directors, Secretary, Ministry/Division/Chairperson of Board of Directors will approve TEC/PEC as the case may be Number of TEC members reduced to 3 for low value purchase (Goods : BDT 25.00 lakh, Woks : 300.00 lakh) Out of 3 members 1 from other PE of Ministry, Division, Agency the PE belongs to
Contd One TEC/PEC for all procurement, if the number of procurement is limited More than one for evaluation of many tenders/proposals and different tenders/proposals at the same time Separate TEC/PEC for complex procurement Selection of TEC/PEC members : -Financial, Commercial, Technical Units of P.E -P.E s Ministry/Division or its Agency -User unit
Contd In case of external members, experienced in financial, technical, commercial or legal matters from other ministries/divisions/agencies or experts from universities or reputed professional body or specialist in the relevant field Members of TEC/PEC are qualified, professionals and of high integrity and AA shall ensure it One member shall be designated as member secretary Presence of 3 members required for validation of TEC/PEC meeting ToR of TEC/PEC : Evaluation, recommendation, submission of EVR
Contd TEC/PEC member may be removed : -Failing to disclose connection -Remains absent in 2 consecutive meeting -Direct breach of Section 64 of PPA,2006 -Transfer, death or absence in country Singular Certificate Collective Certificate TSC : Approved by HOPE or AO, maximum number of TSC is 3 EVR shall be accompanied by Check list as per Rule 8(18)
Rule -11 : Approval of Tender/Proposal AA may either- Approve TEC/PEC s recommendation Seek clarification on EVR Explaining reasons : -Reject recommendation and request re-evaluation -Reject recommendation and instruct to reprocess
Rule -12 : Delegated Procurement Approving Authorities : Ministry/Division/Department/Directorate lacks in Technical Capability to Procure Procurement delegated to capable P.E Nominate an officer for TEC and monitoring implementation Owner approves site, design, construction materials and others
Rules [Rule-15,16 & 17] Session: M1-8 Procurement Planning Procurement Planning
Objectives Procurement Planning Provides overview Budget Time Methods Market Clears up need of assistance (specifications, contract conditions etc.) Allows bundling (of similar needs) or splitting (into lots) Plans for Procurement Committees Prepares for Contract Administration
Further Approach to Planning In order to stimulate thinking, to create options and to assist planning, consider the following questions: What is to be done? When it is to be done? How it is to be done? Who is to do it? What resources are required? Who should know about it? If you plan, you will be in control of the situation, rather than having the situation in control of you
Rule- 16(1) Procurement Planning Preparation of Procurement Plan (PP) is mandatory for all PEs Relates to Contract Strategy as discussed earlier
Careful&detailedprocurement planning is essential for quality project execution Benefits of Procurement Planning Speeds up the procurement process & reduces project implementation delays Contributes to enhanced project quality & efficiency Reduces possibility of error & reduces subsequent work 29/43
Act and Rules Procurement Planning is regulated by: Frequency Approval Publication Splitting into packages/lots PPA 2006 Nature & size of the Procurement Source of funding Limits & conditions Forms PPR 2008
Procurement Planning Good market knowledge is essential; if you don t know what is available, you cannot formulate a good procurement request Rule- 15 emphasizes knowledge of the local market, local supply/works capacity and national industry for the purpose of Procurement Planning
Procurement Planning but always (as said earlier): Ensure Value for Money by attracting maximum competition for the benefit of public interest
To be considered Goods PE takes into account the following when determining the method of Procurement & consolidating of Goods packages Availability Estimated cost Quality Price levels Others GOODS Capacity Type Competition Risks Urgency Framework Contracts may be used for repetitive supply
To be considered Works PE considers the following, in the case of determining the method of Procurement for Works Prevalent conditions Estimated cost Capacity WORKS Expected competition Others Geographic location Completion date
To be considered Services PE considers the following, in the case of determining the method of Procurement for Intellectual & Professional Services Nature Estimated cost Complexity SERVICES Others Capacity
Procurement Plan The Procurement Plan shall be separately prepared for Development Projects/Program and for non development Budget Annual Procurement Plan shall be published (notice board, website, bulletin) Rule- 16
Procurement Plan PE shall, for its own purposes, update the Procurement Plan on a quarterly basis to accommodate delays, re-tendering and other unforeseen changes or constraints
Procurement Plan Rule- 16 (11): PE keeps CPTU posted with the Procurement Plans above the thresholds specified in Schedule II (Goods & Related Services: 10 million Tk., Works: 10 million Tk., Physical & Consultancy Services: 5 million Tk.) To be published on CPTU website ensuring the minimum Preparation time Rule 16 (5) and 5 (Ka): Official cost estimate before finalisation of tender
Procurement Plan The administrative issues of Procurement Planning & exercise on Preparation of Procurement Plan
Development Project/Programme Schedule V, Part A Total Procurement Plan Schedule V, Part A Identifies packages for Goods, Works & Services that are required under the development project/ programme Specifies each procurement package, giving it a unique code & considers the expected cost of the package (as per the DPP/TPP), as well as the anticipated dates when the procurement package will be supplied
Total Procurement Plan for Development Project/Programme Schedule Format Part A
Total Procurement Plan for Development Project/Programme Schedule Format Part A (cont d) CPTU-IMED Three-Week Training on Public Procurement Management M1-8 ESCB 42/43
Development Project/Programme Schedule V, Part A Total Procurement Plan Schedule V, Part A A separate Schedule shall be provided for Goods, Works & Services 43/43
Total Procurement Plan for Development Project/Programme Similar for Goods and Services (Works)
Annual Update of Development Project/Programme At the beginning of each financial year PE shall update the Total Procurement Plan and the estimates cost for a Development Project/Programme on an annual basis and in a rational manner having regard to, among other things, the expected flow of funds
Official Cost Estimate Prior to tendering PE shall prepare the Official Cost Estimate for the procurement before finalization of the Tender or Proposal Documents or before invitation of the Tender or Proposal
Approval If Official Cost Estimate is higher than the Estimated Cost in Procurement Plan of the Development Project/Program, it shall be approved by HOPE If not higher, it shall be approved by an officer authorized by HOPE or AA Except in case of National Procurement of Works under LTM, the Estimate shall be kept sealed and opened by the Tender or Proposal Evaluation Committee at the time of evaluation Preparation of Procurement Plan
Procurement Plan under Revenue Budget Rule- 16(6) At the beginning of each financial year, PE shall prepare only one annual Procurement Plan for Procurement under the Revenue Budget
Annual Procurement Plan for Development & Revenue Budgets Schedule V Part B shows how to complete the Annual Procurement Plan, while Part C, Part D and Part E prescribe the formats for Goods, Works and Services, respectively. 49/43
Annual Procurement Plan Development & Revenue Budgets (Goods) Ministry/Division Agency Procuring Entity Name & Code Project/ Programme Name & Code Budget:
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