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DISADVANTAGES OF
IMPLICATION OF PPRA RULES Bakhtawar Saleem- 2133066
Fatima Waqar - 2131040
Sabahatullah Khan – 214112
Shoaib Tauseef-
Mohammad Zafar Sajjad - 2141157
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CHANGED MECHANISM
Resistance to Change
Conflicts
Trainings
Over all costs up
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CORRUPTION
Unfair competition Not only in money but also in
Quality No laws or effective legal protection Instead , an accretion of complex
laws, rules, regulations, codes and manuals
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PROCESS IS BUREAUCRATIC
Number of unnecessary procedures
Short notice for bids
Prior notices to favored bidders
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LIMITATION ON URGENCY
It’s difficult to purchase items in urgency
Except in case of emergency ,disasters, climates, accidents or wars etc
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APPROVAL MECHANISM Initiate procurement once approval of
the competent authorities.
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PRE-QUALIFICATION OF SUPPLIERS & CONTRACTOR
•Expensive and technically complex equipment
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CLARIFICATION OF BIDS No bidder shall be allowed to alter or
modify after the bids have been opened
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METHODS OF ADVERTISEMENT Authority website Newspaper shall appear in at least two
national dailies English and Urdu
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NEGOTIATIONS General Increase in the Bid Polling of the Contractors Mutually Decided Prices Post Award Negotiations
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ABUSE OF DOMINANCE Prevent New Entrants Cause of Favored Decisions Predatory Pricing
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LIMITING THE NUMBER OF SUPPLIERS Technical Specification rather than
Generic Financial Limits to Quote the Bid
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BIDDING PROCESS Opening Of Bids Evaluation of Bids Rejection of Bids Competitive Bidding Limit
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MARKET SHARING AND CARTEL FORMATION
PRODUCERS OF SIMILAR GOODS TENDS TO SHARE MARKET BASED ON THEIR UNDERSTANDINGS.
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LOWER BID DILEMMA Technical weak firms may opt for low
bids in order to secure the procurement.
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UPSTREAM AND DOWNSTREAM SIDE
Equal attention is required to be paid on the upstream side.
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JUDICIAL, DISPUTE RESOLUTION Slowness in dispute resolution
mechanism Transaction costs increases Overall weakness in judicial system
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LIMITATION ON REGROUPING AND SPLITTING Rule Announce One year plan Should not divert with plans
Disadvantages Rule is limiting the authority for any
splitting or regrouping. Ad to place in advance for annual
requirements.
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SPECIFICATIONRule
Allow widest competition , Not favoring any single contractor
But not applicable on public sector.Disadvantages
Public sector can be biased. Only applicable on private sector
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DOCUMENTATIONRule
A list of Documentation is mentioned for bidding.
Disadvantages Interviewed Mr Najmus Rehmani Too much Documentation Too much time consuming and unable to
complete the process of documentation on time.
May have to visit different Govt Institution for completing documentation which causes further delays.
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STAKEHOLDERS CONSULTATION ON PPR REGIME
Development Partners ADB WB EU USAID
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KEY POINTS HIGHLIGHTED Meeting Held on April 9, 2012 Following Disadvantages were highlighted Non transparent rules and regulations
discouraged the private sector's involvement
Advertisements were often placed near to closing dates in newspapers with limited coverage
Many government departments placed restrictions on registration of bids.
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CONTD. There is no committee for answering
bidders complaints. No internal desk for Misconduct. BID Evaluation: Conclude by the
members that it is among the weakest area of PPRA. Mechanism should be developed for Bid Evaluation.
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Any Question?