Public Financial Management Reform Program
ADB Grant 0133-CAM
22 June 2010
Agenda Introduction
Overview: Public ProcurementSeminar ObjectivesManagement of the SystemOversight, Accountability and Good Governance
International Best Practices: Public procurements under a fully-developed, well-functioning public procurement system - - Step-by-Step Procedures
Carrying out Procurements financed by the State budget, and under the direction of MEF and DPP (in the Khmer language) Procurement Sub-Decree No. 105 dated 18 October
2006
Carrying out Donor-Assisted Procurements under SOP/PMProcurement Sub-decree No. 14 dated 2007
Agenda (con’t)
Oversight, Accountability and Good Governance
Case Studies (time permitting)
Seminar Closing
Introduction and ObjectivesIn December 2004, the Royal Government
of Cambodia, through MEF, desired the establishment of an effective and efficient PFM system with a 10-year planning and implementation period.
As a part of these longer-term reforms, the PFM in Rural Ministries Project, financed by ADB Grant 0133-CAM, aims to strengthen the capabilities of procurement officials the three rural development ministries, MAFF, MRD and MOWRAM
Components: Grant ProgramComponent 1: Improve Public Financial
Management Capacity in Rural Development Ministries
Component 2: Strengthening Capacity for Internal Auditing
Component 3: Strengthening Debt Management
Component 4: Strengthening the Effectiveness of the National Audit Authority (NAA)
The Procurement Component of the Public Financial Management Reform Program (PFMRP) will support training and capacity building:
- In all procurement related matters under the deconcentrated procurement sub decrees for procurement under national budget in MAFF, MRD, and MOWRAM; and
- To assist MAFF, MRD and MOWRAM to ensure efficient functioning of their procurement system; raise awareness of the need to comply with SOP/PM procedures among senior officials of EA through workshops and seminars; and update the SOP/PM
PFMRP Objectives
Overview of Public Procurement
Public vs. Private Procurement
Management of the Public System
Oversight, Accountability and Good Governance
Public procurement is the use of public funds to acquire needed public goods and services
The primary objective of a fully-developed, well-functioning public procurement system is to acquire these goods and services at fair and reasonable prices. Social objectives; such as to ensure the growth and development of Cambodian suppliers, consultants and other service providers, are secondary objectives.
A system that consistently acquires needed public goods and services at fair and reasonable prices is one indicator that it is well-functioning and well-managed.
Another indicator is free and open competition among private sector firms who have confidence in the fairness and integrity of the system
Fraud, waste and abuse will be minimized
Oversight: supervision or watchful care
Accountability: liable or answerable.
Transparency: adhering to published rules
Good Governance: How Government uses a country’s resources for the public good
Oversight and accountability help to ensure “checks and balances” in the system:
Internal Audit: General Inspectorate
External Audit: Cambodia’s Supreme Audit Institution is the National Audit Authority (NAA)
Other checks and balances: Stakeholders
Cambodia’s Current Public Procurement System
As yet, the Royal Government of Cambodia does not have a deeply-rooted public procurement law
The regulatory framework consists of Sub-Decrees and Amendments, easily changeable
Procurements and Privately-financed Build-Own-Operate (BOT) Projects are grouped together
Accordingly, as one of the first steps to procurement reform, Cambodia may wish to consider expediting the legal and regulatory framework to facilitate the capacity building and institutional development initiatives being undertaken
Cambodia’s Procurement Regulatory Framework Procurement Sub-Decree No. 105 dated October 28, 2006; Procurement Sub Decree dated June 8, 1995; Procurement Sub-Decree No. 14 dated February 26, 2007; Implementing Rules and Regulations Governing Public Procurement
(IRRPP), amended on September 2, 1998; Draft Implementing Rules and Regulations on Public Procurement and
Procurement Manual for Goods, Works and Services (to be approved); Procurement Manuals for Externally Financed Projects/Programs in
Cambodia (Vols. 1-3) dated September 2005; Prakas No. 45 on the Implementation on Deconcentralization for Public
Procurement dated January 31, 2005; Instructive Circular on Procurement Planning Guidelines No. 12 dated
December 7, 2006 Supplementary Instructions of Prakas No. 319 on Rules and Regulations of
Public Procurement dated 31 August 1995
Effectively Three SystemsProcurements financed by the State BudgetDonor-Supported Procurements (SOP/PM)Independent Procurement Agent (IPA)
Significant capacity building needsProcurement officials are (or appear to be)
assigned routine administrative work, without decision-making authority (PRC)
Government not yet able to decentralize the procurement function due to capacity deficiencies
MEF awarded contract to Independent Procurement Authority (IPA) to carryout World Bank-financed procurements on behalf of the Government.
At some point in the near future, the ministries will be required to assume these IPA duties (approx 200 procurements/year)
PFM Reform Program: Roadmap of Procurement Assistance to Royal Government of Cambodia
Focused on 3 rural development ministries
Training and capacity building in all procurement related matters under the deconcentrated procurement sub
decrees for procurement under national budget and
within the scope of SOPs and PM
On-the-Job (OTJ) Training
Mentoring/Coaching: National and International Procurement Specialists will work directly with the three ministries to help “problem solve”
Specific objectives on the following slides
Strengthen capacity in procurement planning and monitoring and assisting in preparing the Annual Procurement Plan and the Project Procurement Plan;
Strengthen capacity to monitor and evaluate the performance of the public procurement system;
Clarify lines of accountability within the procurement process, including effective oversight guidelines and identify key internal controls in budget execution
Strengthen the capability to monitor and evaluate procurement progress and conformance procedures and in preparing regular procurement reports to MEF and other agencies;
Update databases on procurement status and use procurement website to post information on procurement processes and contract awards; and
Establish good practices to ensure efficient functioning of the PRCs.
Implementation Structure
Funding AgencyADB
Executing AgencyMinistry of Economy &
Finance
MRD MAFF MOWRAM
Department of Investment & Cooperation
PFM Committee
PFM Reform Secretariat
Economic & Finance Institute
ManilaBank Headquarters
Cambodian Resident Mission
PFM Working Group
PFM Working Group
PFM Working Group
CONSULTANTS
SUB- WORKING GROUPS PFM
International Best PracticesInternational Best Practices:
Step-by-Step Procedures
Following Slide Shows the 4 Cornerstones of a fully-developed, well-functioning system
Procurement Cornerstone #11. COMPETITION: The primary purpose of a fully-
developed, well-functioning public procurement system is to acquire needed public goods and services at fair and reasonable prices. This objective can most effectively be achieved through free and open competition. The first step to maximize free and open competition is through widely-circulated public advertising which opens-up and instills greater confidence in the procurement process, encourages more contractors to compete for government contracts, and results in overall lower tariffs for the benefit of the public and all users.
Procurement Cornerstone #22. TRANSPARENCY: Transparency enables
everyone to understand the Government’s objectives and the precise methods to be used to attain them. A transparent public procurement process requires (a) the "rules of the game" to be made available to all participants and (b) the "game" to be followed in accordance with those rules.
Procurement Cornerstone #33. FAIRNESS: Capable, responsible
contractors will compete for government contracts only if they have confidence in the fairness and integrity of the overall process; i.e., all participants are treated fairly and consistently over time and as between each other.
Procurement Cornerstone #4
ACCOUNTABILITY: Accountability is an essential element of good governance and ensures that the Government fulfills its fiduciary duty to the public in identifying, preparing, tendering and contracting for needed public goods and services.
Step-by-Step Procedures
The following charts graphically depict the step-by-step procedures for competitive tendering using international best practices.
FULL COMPETITIVE BIDDINGExecuting Agency Tasks Through Receipt of Bids
ExecutingAgency
Authorized to Proceed
with Procurement
Draft Pre-qualification Questionnaire
Executing Agency Prepares
Final Pre-qualification Questionnaire
Executing Agency
Prepares Draft Bid Document
Liaison with Associations
Liaison with Associations
Widely Advertise
Availability Prequalification Questionnaire
ProvidePrequalificatio
nsQuestionnaireSimultaneousl
yto all
RequestingContractors
Publicly-Available
List ofContractors Requesting
Pre-Qual Questionnaire
Contractors Qualified?
Notify Contractors that Did Not Pass Prequalification
Procedures
Shortlist of
Prequalified
Contractors
Publicly-AvailableList of
Contractors PassingPre-Qualifications
Issue Bid Document
Simultaneously to all Shortlisted Contractors
Executing Agencyto Conduct Pre-Bid
Meeting?
Bids Received
by Executing
Agency
Reasonable time for
Bidders to prepare bids
Yes
No
Pre-BidMeetingConduct
ed
Pre-Bid Conference
Minutes and/orBid
Amendment
Yes
Reasonable time for
Bidders to prepare bids
12 Step-by-Step Procedures
Please refer to the 30 page handout which describes the twelve (12) step-by-step procedures
The following slides describe the major procurement actions
STEP 1: Appoint a Procurement Committee STEP 2: Prepare a Bid DocumentSTEP 3: Draft Prequalification
QuestionnairesSTEP 4: Announce the Availability of an
Invitation to PrequalifySTEP 5: Prequalification ProceedingsSTEP 6: Shortlist of Prequalified Bidders
STEP 7: Disseminate the Bid Document to all Prequalified Bidders
STEP 8: Pre-Bid Meeting for all Shortlisted Bidders
STEP 9: Administratively Processing Proposals
STEP 10: Fairly and Impartially Evaluating Proposals
STEP 11: Ranking all Responsive BidsSTEP 12: Recommend a Proposed Contractor
State Budget-Financed Procurements
Carrying out Procurements financed by the State budget, and under the direction of MEF and DPP (in the Khmer language)
Procurement Sub-Decree 105 dated 18 October 2006
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karebIkÉksaredjéføedayRbkYtRbECgCalkçN³GnþrCati“dbG”karedj éføedayRbkYt RbECgkñúg Rsuk “dbs” karBieRKaHéfø “Bf” RtUveFVIeLIgPøam² eRkaykalbriecäTbBaÆb;karTTYl Éksaredjéfø nigRtUv eFVIeLIgCasaFarN³.
52
karebIkÉksaredjéføRtUveFVIkMNt;ehtu nigRtUvpþl;kMNt;ehtuenaHeGayRkum h‘unTaMgGs;Edl )andak;sMeNIsMuedjéføehIykMNt;ehtuenHk¾Gacpþl;eGayRKb;PaKIEdlesñIsMupgEdr . kMNt; ehtuebIkÉksaredjéføRtUv Etkt;Rtaya:gehacNas; eQµaH nigsBa¢atiGñkedjéføtMél dak;edjéføsuBlPaBÉksaredjéfø vtþmanGñkcUl rYmcMnYnR)ak;kk;edjéfø nigsuBlPaBR)ak; kk;Fanakaredjéfø.
53
CMBUkTI 3lT§kmµesvaTIRbwkSa
maRta 13
TIRbwkSaGaceRCIserIsykmkedIm,Ipþl;nUvesvaÉkeTskñúgkarGnuvtþn¾KMerag b¤kic©snüa sMxan;² b¤mYypþl;CMnYy b¤eyabl;CMnaj kñúgkargarBRgwgsßab½n b¤smtßPaB, TIRbwkSaGacCaRkum h‘un TIRbwkSa b¤CaÉktþCn.
maRta 14nItiviFIkñúgkareRCIserIs nigkarvaytMélRkumh‘unTIRbwkSa nwgkMNt;kñúg Gvbls ehIynItiviFITaMg enHcaM)ac;RtUvGnuvtþsMrab;RKb;krNI. KMrUÉksaredjéfø nigTMrg;kic©snüanwgRtUvkMNt;kñúg ]bsm<½n§én Gvbls. ÉksarKMrUTaMgGs;enH RtUveRbIR)as;enAkñúgRKb;krNITaMgGs;.
54
maRta 15kareRCIserIsRkumh‘unTIRbwkSa
RtUveFVIkarpSBVpSayCasaFarN³ edIm,I eGayRkumh‘unTI RbwkSananacUlrUmdak;cMNab;GarmµN¾ nig bBa¢ak;BIcMNab; GarmµN¾kñúgkarbMeBjkargar. kñúgkrNI tMél)a:n;saµnénesvaTIRbwkSax<s;Cag kMritTwkR)ak;Edl)ankMNt;kñúg Gvbls karpSBVpSay eRCIsersIRkumh‘un TIRbwkSa RtUveFVIeLIgCaPasaExµr nigPasarGnþrCatiEdlBak;B½n§nwgkargarenaH
55
maRta 16 kareRCIserIsTIRbwkSaÉktþCn RtUveFVIeLIgedayEp¥kelImUldæanénlkçN³sm,tþi nigbT BiesaFn¾ rbs;ÉktþCnTak;TgnwgTIkEnøgkargarEdlFaøb;)anbMeBj. karGeBa©IjeGaydak;cMNab;GarmµN¾RtUvpSBVpSayCasaFarN³TUTaMgRbeTs ehIyenAeBltMél )a:n;sµanénkargarRtUvbMeBjelIsBIkMritTwkR)ak;Edl)ankMNt;kñúg GvblsenaHkarpSBVpSay eRCIserIsTIRbwkSaÉktþCn RtUveFVIeLIgCaPasaExµr nigPasaGnþrCati Ep¥ktamTMhM kargarRtUv bMeBjTIRbwkSaÉktþCn nwgRtUv)an eRCIserIsedayEp¥kelIlkçN³vinicä½yEdl)anEcgkñúglixit GeBa¢Ijdak;cMNab;GarmµN¾ nigkarGeBa¢IjeGaycUlrYm eFVIkar crcaedIm,IcuHkic©snüaCamYy sßab½nGnuvtþlT§kmµ.
56
CMBUkTI 4sßab½nRKb;RKglT§kmµsaFarN³maRta 17RksYgesdækic© nighirBaØvtßú Ca “saßb½nRKb;RKglT§kmµsaFarN³”.RksYgesdækic© nig hirBaØ vtßúkMNt;kMritTwkR)ak;sMrab;Gnuvtþþ viFIsaRsþénlT§kmµ erobcMeKalneya)ayénlT§kmµ nignItiviFI lMGiténlT§kmµ sMrab;GnuvtþRsbeTAtambTb,BaØtþiEdl manRsab;nigGnuvtþ GMNacdéTeTot tamkarcaM)ac;edIm,IFanaeGaymuxgar nigkarGnuvtþdMeNIrkar)anl¥.
maRta 18RksYgesdækic© nighirBaØvtßú manParkic©eFVIkarEklMG nigbMeBjbEnßmelIviFannigbTb,BaØtþisþIBI lT§kmµsaFarN³ “Gvbls”ral;karEklMG b¤karbMeBjbEnßm RtUveFVIeLigedayRbkas b¤saracrENnaM.
57
maRta 19RsbtamGnuRkwtüelx 04 GnRk>bk cuHéf¶TI 20 Ex mkra qñaM 2000 sþIBIkarerobcM nigkarRbRBwtþ eTArbs;RksYgesdækic© nighirBaØvtßú naykdæanlT§kmµsaFarN³ CaesnaFikareGayRksYgesdækic© nighirBaØvtßú elIkargarRKb;RKglT§kmµsaFarN³enAtambNþa RksYgsßab½n extþ Rkug XMu sgáat; shRKassaFarN³ nigRKwHsaßnsaFarN³redæ)alTaMgGs; kñúgRBHraCaNacRk km<úCaedayminKitBIRbPBmUlniFi.
58
CMBUkTI 5karTTYlxusRtUvrbs;sßab½nGnu
vtþlT§kmµmaRta 20karTTYlxuRtUvkñúgkarGnuvtþGnuRkwtüenH k¾dUcCa GvblsCabnÞúkrbs;RbFansßab½nGnuvtþlT§ kmµRbFansßabn½GnuvtþlT§kmµmanParkic©RKb;RKgnigRtYtBinitüCaRbcaMral;kic©lT§kmµrbs;sßab½nxøÜn.
maRta 21sßab½nGnuvtþlT§kmµnImYy² RtUvbegáItGgÁPaBlT§kmµ “Gl” Edlmanfañk;esµIkariyal½yedIm,I sMrYl karGnuvtþkic©lT§kmµeGay)aneBj elj nigTTYlra:b;rgelIral;kic©lT§§kmµTaMgGs;enAkñúg sßab½nrbs;xøÜn. tYnaTIlMGit karTTYlxusRtUv nigkarEtgtaMg b¤pøas;bþÚr RbFan GgÁPaB lT§kmµ nwg kMNt;kñúg Gvbls. RbFan GgÁPaBlT§kmµ nigsmaCikrbs;xøÜnminRtUvkan;muxgarepSgeTotenAkñúg sßab½n b¤RksYg ehIyRtUvbMerIkargar eBjema:gsMrab;GgÁPaBlT§kmµ.
59
maRta 22
saßb½nGnuvtþlT§kmµ RtUveFVIEpnkarlT§kmµRbcaMqñaMrbs;xøÜn edIm,Idak;CUnRksYgesdækic© nighirBaØvtßú Binitü nigGnum½t enAedImqñaMsareBIB½n§nImYy². ral;KMeragcMNayEdl RtUvGnuvtþviFIsaRsþlT§kmµsaFarN³ RtUvkt;bBa©ÚlkñúgEpnkarlT§kmµ. karerobcMEpnkarlT§kmµ RtUvEp¥ktamTMrg;EdlnwgkMNt;kñúg Gvbls. kñúgkrNIcaM)ac; EpnkarlT§kmµGacEktMrUv enAqmas TI2 énqñaMsareBIBn§nImYy². saßb½nGnuvtþlT§kmµRtUv Gnuvtþkic©lT§kmµeGay)an eTogTat;tamkmµviFIEdl)ankMNt;kñúgEpnkarlT§kmµ.
60
maRta 23
sßab½nGnuvtþlT§kmµRtUvepJIr)aykarN¾lT§kmµRbcaMExmkRksYgesdækic©nighirBaØvtßúGMBI Tinñn½yénkic©snüaTaMgGs; rYmTaMgkargarvishmCÆkarlT§kmµ tamKMrUrbs;RksYgesdækic© nig hirBaØvtßú pþl;eGay. kñúgkrNI Gak;xanmin)anbBa¢ÚnTinñn½yRKb;RKan;eTRksYgesdækic© nig hirBØavtßú niwgmanviFankarkdak; vin½ytam karCak;Esþg.
sßab½nGnuvtþlT§kmµTaMgGs;EdleRbImUlniFisaFarN³RtUvrkSaTukr)aykarN¾lT§kmµEdlnwgkMNt;kñúg Gvbls. ehIyr)aykarN¾TaMgenaHRtUvpþl;nigGnuBaØatieGayeFVIkarRtYtBinitü edayminmankarlak;)aMg enAeBlGaCaJFrmansmtßkic©esñIsuM.
61
CMBUkTI 6KN³kmµaFikarkMNt;buerlkçN³sm,tþivaytMél nigRbKl;kic©snüa “Kbvb”
maRta 24RKb;sßab½nGnuvtþlT§kmµ
RtUvbegáItKN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa “Kbvb” mYyEdlTTYlxusRtUvRtYtBinitüelIEpnkarlT§kmµÉksardjéføkar pþl;Gnusasn¾edIm,IRbKl;kic©snüa karGnuvtþkic©snüa nigpþl;Gnusasn¾bNþwgtva:. karerobcMbegáItKN³kmµakarlT§kmµ sMrab; XMu sgáat; nwgkMNt;edayELkkñúg Gvbls.
62
maRta 25smaCik Kbvb
EdlRtUvEtgtaMgedayRbFansßab½nmanGNtþikargarry³eBl 2qañM. GNtþienH Gacbnþ)anry³eBl1 qñaMeTot b:uEnþmineGayelIsry³eBlsrub 3qñaMeLIy. smaCik Kbvb Edl)anbMerIkargarry³eBl 3qñaMehIyenaH GacRtUvEtgtaMgeLIgvij)aneRkayBIry³eBl ya:gticbMput 1qñaM bnÞab;BI)anbBa©b;ry³eBl 3qñaMCa smaCIkrbs; Kbvb.
smaCik Kbvb EdlRtUvEtgtaMgedayRbFansßab½nGnuvtþlT§kmµRtUvmancMnYnBI 4 eTA 6 nak;bEnßmelIRbFan nigGnuRbFan Kbvb Edl)ancat;taMgtammaRta 26 énGnuRkwtüenHehIykñúg enaHRtUvmanya:gehacNas;smaCikmñak;manCMnajhirBaØvtßúnigsmaCikmñak;eTotmanCMnajbec©k eTs dUcCa visVkrCaedIm. RbFansßab½nGnuvtþlT§kmµGaccat;taMgsmaCiklT§kmµbeNþaHGasnñ sMrab;GnuvtþlT§kmµBiessNamYy EdlRtUvcaM)ac;nUvCMnaj nig cMeNHdwgBiess. smaCikbeNþaH GasnñRtUvrMsayedaysV½yRbvtþieRkaykic©lT§kmµBiess)anbBa©b;. naykdæanlT§kmµsaFarN³ nwgRtUv)ansaßb½nGnuvtþlT§kmµGeBa¢IjeGaycUlrYm nigmansiT§cUlrYmRKb;karBiPakSarbs; KbvbCaGñksegátkarN¾ nwgkMNt;kñúg Gvbls.
63
maRta 26
KbvbRtUvmansmaCikGciéRnþy¾.RbFanGgÁPaBlT§kmµ“Gl”RtUveFVICaelxaFikarrbs; Kbvb siT§dwknaMrbs; Kbvb RtUvmanRbFanmYyrUb GnuRbFanTI1 mYyrUb nigGnuRbFanTI2 mYyrUb. siT§dwknaM rbs; Kbvb RtUvERbRbYltamkMriténtMélkic©lT§kmµEdlnwgkMNt;kñúg Gvbls, siT§idwknaM Kbvb RtUv)ankMNt;tamkMrit dUcxageRkam³-lT§kmµkMritx<s; ³ dwknaMedayRbFan Kbvb CaRbFansßab½n-lT§kmµkMritmFüm ³ dwknaMedayGnuRbFanTi 1 Kbvb- lT§kmµkMritTab ³ dwknaMedayGnuRbFanTI 2 Kbvb
GnuRbFanTI 1 nigGnuRbFanTI 2 Kbvb RtUv)anEtgtaMgedayRbFansßab½n nigRtUv)anRbKl;siT§eBjeljeGayeFVICaEpñkmYyrbs; Kbvb kñúgkarGnum½tyl; RBmelIr)ayN¾ vaytMél nigcuHkic©snüa.
64
maRta 27Kbvb manParkic©RtYtBinitüelIskmµPaBlT§kmµ
mansiT§yl;RBmelIr)aykarN¾ vaytMélnig erobcM cuHkic©snüatamnItiviFI eTAtamkMritTwkR)ak;EdlnwgkMNt;kñúg Gvbls, Kbvb RtUveFVIkarsMercCa ÉkcänÞ cMeBaHr)aykarN¾vaytMél nigkarpþl;Gnusasn¾ edIm,IRbKl;kic©snüa.
GnuRbFanTI 1 nigGnuRbFanTI 2 KbvbRtUv)anpþl;siT§iedIm,IcuHhtßelxakñúgnamsßab½n edaymincaM)ac;mankaryl;RBmelIkic©lT§kmµehIyenaHmintMrUveGaymankar yl;RBmbEnßmBI sßab½nNaeTot eLIy elIkElgEtcMeBaHkrNIdUcxageRkam³-kic©snüaelIskMritTwkR)ak; EdlnwgkMNt;kñúg Gvbls RtUvbBa¢ÚnmkRksYgesdækic© nighirBaØvtßú edIm,IBinitü nigsMerc.- kic©snüaelIskMritTwkR)ak;EdlnwgkMNt;kñúgGvblsehIyCaKMeragEdlmanlkçN³b:HBal;RsYc Rsal dl;neya)ay b¤man\T§iBlxaøMgdl;sgÁm b¤sIlFm’ b¤GacbgáeRKaHfñak;dl;brisßanRtUvbBa¢Ún eTA TIsþIkar KN³rdæmRnþI tamry³RksYgesdækic© nighirBaØvtßú edIm,IBinitü nigsMerc.
65
CMBUkTI 7tRmUvkarcaM)ac;sMrab;kic©lT§kmµ
maRta 28RKb;lT§kmµTMnij sMNg; esvakmµ
nigesvaTIRbwkSaTaMgGs; RtUvEteFVIkarpSBVpSayCasa FarN³ elIkElgEtkarsÞg;tMélniglT§kmµEdlGnuvtþtamviFIsaRsþ edayELk dUcmanEcgenA kñúgmaRta 6 énGnuRkwtüenH.
GñkedjéføTaMgGs; mintMrUveGayeFVIkarcuHbBa¢IeFVIcMNat;RbePT nigcMNat;fañk;Rkumh‘un edIm,IsiT§eBj elj kñúgkar CavÉksaredjéfø b¤sMeNIsMudak;edjéfø elIkElgEtGñkTTYlkarsag sg;elIKMerag cMNayEdleRbIR)as; fvikarCati RtUvGnuvtþtambBaØtþiénmaRta29 énGnuRkwtüenH.
66
maRta 29
edIm,ImansiT§icUlrYmenAkñúgKMeragkargarsaFarN³GñkTTYlkarsagsg;RtUvEtcuHeQµaH kñúgbB¢aIeFVIcMNat;RbePT nigcMNat;fañk;Rkumh‘unedayeyagelIRbePTKMeragEdlGñkTTYlkarsag sg;mansmtßPaBRKb;RKan;kñúgkarbMeBj. kareFVIcMNat;RbePT nigcMNat;fñak;Rkumh‘un nwgRtUveFVI eLIgedayKN³kmµaFikarmYyEdlmantMNagnaykdæanlT§kmµsaFarN³eFVICaRbFantMNagRksYg erobcMEdndInKrUbnIykmµ nig sMNg; nig tMNag]sSahkmµsMNg;kñúgRsukeFVICasmaCiknwgRtUvcat; ;taMgeLIgedayrdæmRnþIRksYgesdækic© nighirBaØvtßú. Rkumbec©keTsmYyGacRtUv)anbegáItenAral;eBleFVIkarvaytMélelIBaküesñIsMueFVIcMNat;RbePT nig cMNat;fañk;Rkumh‘un.
karENnaMlMGit sMrab;kareFVIcMNat;RbePT nigcMNat;fañk;Rkumh‘un sMrab;GñkTTYlkar sagsg;nwgkMNt;kñúg Gvbls nwgRtUvpSBVpSayCasaFarN³.
67
maRta 30
manEtÉksaredjéføedayRbkYtRbECgCalkçN³GnþrCati “dbG” nigkaredjéfø edayRbkYtRbECg Rsuk “dbs” b:ueNÑaH EdlnwgRtUvlk;eGayGñkedjéfø. ÉksarlT§kmµepSg eTotRtUvEckCUnedayminKitéfø. tMéllk;Éksaredjéfø RtUvsißtenAeRkamkarENnaMEdlnwg kMNt;kñúg Gvbls.
68
maRta 31RKb;Éksaredjéfø edayRbkYtRbECgvCalkçN³GnþrCati “dbG”
karedjéføeday RbkYtRbECgkñúgRsuk “dbs” nigÉksarbuerlkçN³sm,tþiRtUverobcMeGTayrYceRsc)ac;sMrab;lk; nwgpþl;eGayGñkcUlrYmedjéfø)anTan;eBlevla nigesµIPaB. karBnüary³eBlpSBVpSay RtUv)an kMNt;eLIgvijcMeBaHehtuplsmRsbNamYyEdlbNaþleGayyWty:avkñúgkarerobcMÉksaredjéfø. saßb½nGnuvtþlT§kmµRtUveFVIkarBnüakalbriecäTsMrab;TTYlÉksaredjéføb¤ÉksarbuerlkçN³ sm,tþi edIm,ITukeBlRKb;RKan;eGayGñkedjéføerobcMÉksar)anTan;eBl.
eBlevlaRKb;RKan;nwgkMNt;kñúg Gvbls edIm,ICYyeGayGñkedjéfø niwgTIRbwkSaTaMgGs; erobcMÉksar niwgdak;sMeNIedjéfø.
69
maRta 32ral;karR)aRs½yTak;TgCamYyGñkedjéfø
enAkñúgGMLúgeBlkMBugdMeNIrkaredjéfø kar vaytMél niwgkarerobcMeFVIkic©snüaRtUveFVIeLIgCalaylkçN¾GkSr ehIykñúgkrNícrcaéføRtUvman kMNt;ehtuénkarcrcaéfø EdlRtUvcuHhtßelxa edayPaKITaMgBIr.maRta 33
KµanGñkedjéføNamYyRtUv)anGnuBaØatieGaydwg b¤)anTTYlBt’manGMBIlT§pl énkaredjéføCapøÚvkareLIy kñúgxN³EdlBt’man minTan;)anRbkasCasaFarN³.
70
maRta 34RKb;sMeNIedjéfø niwgsMeNIeRCIserIsTIRbwkSaTaMgGs;
¬TaMgbec©keTs nighirBaØvtßú¦ RtUvEterobcMebIk CasaFarN³ ehIykMNt;ehtuRtUvpþl;eGayRkumh‘un nigbuKÁlEdl)ancUlrYm TaMgGs;. kMNt;ehtuRtUvbiT nig RbkaselIbBa¢rBt’manenAsßab½nGnuvtþlT§kmµ EdlsaFarNCnTU eTAGacemIleXIj cab;BIeRkayéf¶ebIk Éksaredjéfø b¤ebIksMeNIsMuedjéfø b¤bnÞab;BIkarRbKl; kic©snüasMrab;mYyry³eBlya:gxøI EdlnwgkMNt;kñg Gvbls. kMNt;kehtuftcMlgk¾Gacpþl; eGaysaFarNCnNaEdl)andak;BaküesñIsMu.maRta 35
Kµankic©snüaNamYynwgRtUv)anRbKl;CUnedayEp¥kelIlkçN³vinicä½yEdlmin)anbB¢aÚleTAkñúgÉksar edjéfø TaMgc,ab;edImb¤ÉksarEkERbkñúgÉksaredjéfø nigsMeNIeGaydak;edjéfø b¤ karGeBa¢IjeGaydak;cMNab; GarmµN¾sMrab;TIRbwkSaÉktþCn. 71
maRta 36r)aykarN¾vaytMélRbKl;kic©snüanImYy²
RtUvrkSaTukCaÉksarenAsßab½n Gnuvtþ lT§kmµ. r)aykarN¾vaytMél RtUvEteKarBtamKMrYsþg;dar EdlnwgkMNt;kñúg Gvbls. esckþIsegçbGMBIlT§plénkarvaytMél RbKl;kic©snüa RtUvbiTRbkaselIbBa¢rBt’man b¤dak;kñúgeKhTMB½rRbsiinebImanenAsßabn½GnuvtþlT§kmµEdl saFarNCnTUeTAGacemIleXIj cab;BIeRkay éf¶ebIkÉksaredjéfø b¤ebIksMeNIrsMuedjéfø b¤bnÞab;BIkarRbKl;kic©snüasMrab;mYyry³eBlya:gxøI EdlnwgkMNt;kñúg Gvbls ehIyesckþIsegçbkMNt;ehtuenaHk¾RtUvpþl;eGaypgEdr cMeBaHRkumh‘un nigbuKÁlEdl)ancUlrYmedjéføTaMgGs;EdlesñIsMu.
72
maRta 37smaCikTaMgGs;rbs;GgÁPaBlT§kmµ “Gl” KN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa “Kbvb”mRnþInaykdæanlT§kmµsaFarN³ GñkedjéføRtUvhtßelxaelIesckþIRbkassþIBIRkmsIlFm’ viCa¢CIv³ EdlnwgkMNt;kñúg Gvbls. smaCikrbs;GgÁPaB lT§kmµmRnþInaykdæanlT§kmµ saFarN³ RtUvcuHhtßelxaelIesckþIRbkasenH Caerogra;lqñaM. GñkedjéføRtUvcuHhtßelxaerogral;eBlEdldak;BaküsuMedjéfø ehIy Kbvb k¾RtUvcuHhtßelxaelIesckþIRbkasenHpgEdr enAral;eBlyl;RBmelIr)aykarN¾vaytMél.
73
CMBUkTI 8karbþwgtva:
nwgkarRtYtBinitükic©lT§kmµmaRta 38
Gñkedjéfø b¤TIRbwkSamansiT§dak;BakübWþgtva:CalaylkçN¾GkSrenARKb;dMNak;kalén dMeNIrkareFVIlT§kmµ. Bakübþwgtva:enHRtUvdak;CUnsamIsßab½nGnuvtþlT§kmµedaybMeBjeQµaH nigcuH htßelxaelIBakü bþwgtva:ehIyRtUvcMlgbNþwgenH bBa¢ÚneTARksYgesdækic© nighirBaØvtßú sßab½nGnuvtþ lT§kmµRtUveFVIkarBinitü Bakübþwg nigpþl;cMelIykñúgry³eBl 15éf¶énéf¶ eFVIkarKitBIéf¶TTYlBakü bwþgtva:.
RbsinebIBakübwþgtva:RtUv)aneFVIeLIg kñúgGMLúgeBlvaytMélRbKl;kic©snüa samIsßab½n GnuvtþlT§kmµRtUveqøIyeTAnwgkartva:Paøm² bnÞab;BIkarRbKl;kic©snüarYcehIy. lixiteqøIytbenH RtUvcMlgCUnRksYgesdækic© nighirBØavtßúmYyc,ab;.
74
Gñkedjéfø b¤TIRbwkSa EdlmineBjcitþnigcMelIyrbs;sßab½nGnuvtþlT§kmµ mansiT§bwþg bnþEfmkñúgry³eBl 15éf¶ énéf¶eFVIkarKitBIéf¶Edlsaßb½nGnuvtþlT§kmµ)an pþl;cMelIy nigsMueGayRksYgesdækic© nighirBaØvtßúeFVIkarBinitüeLIgvijelIesckþIrbs; sßab½nGnuvtþ lT§kmµ.
RksYgesdækic© nighirBØavtßú RtUvpþl;cMelIy kñúgry³eBlv 15éf¶ éneFVIkar KitBIéf¶)anTTYlBakübwþgtva:. maRta 40
esckþIsMercrbs;RksYgesdækic© nighirBaØvtßú cMeBaHbNþwgtva: CaesckþIesMerc cugeRkay. b:uEnþesckþIsMercenH GacCakmµvtßúénbNþwgtva:eTAtulakar)an kñúgry³eBl 30éf¶ énéf¶eFVIkar KitBIéf¶ecjesckþIsMerc.
75
maRta 41RKb;saßb½nGnuvtþlT§kmµ Gñkedjéfø
GñkpÁt;pÁg; GñkTTYlkarsagsg; nwgTIRbwkSa enAeRkamkic©snüahirBaØb,TansaFarN³ RtUvRbkan;x¢ab;nUvRkmsIlFm’viCa¢CIv³x<s;bMput enAkñugGMLúgeBleRCIserIs nigkarGnuvtþkic©snüa.
raCrdæaPi)almansiT§eFVIGFikarkic© nigBinitüeLIgvijelIÉksarEdlCab;Bak;B½n§nwgkar edjéfø sMeNI sMuedjéfø nigkic©snüarbs;Gñkedjéfø GñkTTYlkarGñkpÁt;pÁg; nigTIRbwkSaTaMgGs;.
76
CMBUkTI 9eTasb,BaØtþi
maRta 42
buKÁlTaMgGs;EdlBak;B½n§nwgdMeNIrkarlT§kmµRtUvraykarN¾eTAKN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa “Kbvb” rbs;sßab½nGnuvtþlT§kmµb¤sßab½nman smtß kic©epSgeTot enAeBlEdlmanPsþútagc,as;las;EdlCamUldæannaMeGaymankarsgS½yfamanGMeBI BukrlYy GMeBIbnøM GMeBIXubXit nigGMeBIbgçitbgçM.
enAkñúgn½yénGnuRkwtüenH GMeBIBukrlYy GMeBIbnøM GMeBIXubXit nigGMeBIbgçitbgçM kñúgkic©lT§kmµsaFarN³ RtUv)ankMNt;dUcxageRkam³-“GMeBIBukrlYy” sMedAdl;karsUk b¤karTTYlvtßúmantMél edIm,IeFVIeGayman\T§iBlelI skmµ PaBmRnþIsaFarN³enAkñúgdMeNIrkareRCIserIsRbKl;kic©snüa b¤enAkñúgkarGnuvtþ kic©snüa.- “GMeBIbnøM” sMedAdl;karbkRsaybMéPøehtukarN¾ edIm,IeGayman\T§BlelIdMeNIrkareRCIserIs RbKl;kic©snüa b¤karGnuvtþkic©snüaeFVI
77
eGayxUcxacRbeyaCn¾rbs;raCrdæaPi)al nigrYmCamYyGMeBIXubXitkñúgcMeNamGñkedjéfø ¬mun b¤eRkayeBldak;sMeNIsMuedjéfø¦ edIm,IerobcMbegáIttMéledjéføsib,nimµitbegáItkMrit minEmnCa lkçN³RbkYtRbECg eFVIeGayxUcRbeyaCn¾rbs;raCrdæaPi)al kñúgn½yminEmnCalkçN³RbkYtRbECg edaycMh nigesrI.-“:GMeBIXubXit” sMedAdl;Epnkar b¤karerobcMrvagGñkedjéføBIr b¤eRcInnak; EdlerobcMeLIg edIm,IbegáIttMéledjéføsib,nimµit begáIttMélkMritminRbkYtRbECg b¤edIm,IeFVIeGayman\T§iBlelIs skmµPaBrbs; PaKINamYyenAkñúgdMeNIrkaredjéfø b¤CH\T§iBlelIkarGnuvtþkic©snüa.-“: GMeBIbgçitbgçM” sMedAdl;karhamXat; b¤karKMramkMEhgedaypÞal; b¤edayRbeyal eFVIeGay maneRKaHfañk;dl;buKÁl b¤RTBüsm,tþirbs;enHedIm,IeFVIeGayman\T§Bl kñúgkarcUlrYmkñúgdMeNIrkar lT§kmµrbs;buKÁlenH b¤eFVIeGaymankarCH\T§iBlelIkarGnuvtþkic©snüa.
78
maRta 43
enAeBlsßab½nGnuvtþlT§kmµxkxankñúgkarpþl;r)aykarN¾sþIBIskmµPaBlT§kmµEdlnwg kMNt;kñúg Gvbls b¤lT§plénkarRtYtBinItüelIBakübNþwgbgðajfasßab½nGnuvtþlT§kmµmin)an GnuvtþRtwmRtUvtam viFIsaRsþ nignItiviFIénlT§kmµ b¤manJPsþútagbgðajfa manGMeBIBukrlYy GMeBIbgøM GMeBIXubXit nigGMeBIbgçitbgçM RksYgesdækic© nighirBaØvtßú mansiT§tMrUveGaysaßbn½GnuvtþlT§kmµenaH dak;CUnesckþIRBagkic©snüaTaMgGs; edayminKitBIkMritTwkR)ak; Edl)ankMNt;edayRksYgesdækic© nighirBaØvtßú edIm,IeFVIkarRtYtBinitü nigsMerccugeRkay.maRta 44
enAeBlEdlmRnþIraCkarNamñak;enAkñúgkarGn uvtþkic©lT§kmµ RtUv)anrkeXIjfaman Bak;B½n§nwgGMeBIBukrlYy GMBIekgbnøM GMeBIXubXit nigGMeBIbgçitbgçM buKÁlenaH GacRtUvTTYlTNÐkmµ vin½yEpñkrdæ)al. TNÐkmµ vin½yEpñkrdæ)alenH minEmnCa]bsKÁdl;dMeNIrkarénkarecaTRbkan;nig pþnÞaeTasedayeyagtamc,ab;CaFrmaneLIy.
79
maRta 45enAeBlEdlGñkedjéføGñkTTYlkar GñkpÁt;pÁg;
Rkumh‘unTIRbwkSa b¤TIRbwkSaÉktþCn RtUv)anrkeXIjfa manBak;B½n§kñúgGMeBIBukrlYy GMeBIekgbnøM GMeBIbgçitbgçM nigGMeBIXubXitKña rdæmRnþIRksYgesdækic© nighirBaØvtßú Gac sMerchamXat;Rkumh‘un b¤buKÁlTaMgenaHmineGaycUl rYmkñúgkarpÁt;pÁg; TMnij sMNg; esvakmµ CaGciéRnþy¾ b¤kñúgry³eBlminticCagbIqñaM. karhamXat;enH minEmnCa]bsKÁdl;dMeNIrkarénkarecaTRbkan; nigpÞnaÞeTas edayeyageTAtam c,ab;CaFr maneLIy.
80
CMBUkTI 10Gvsanb,BaØtþi
maRta 46bTb,BaØtþiTaMgLayNa EdlpÞúynwgGnuRkwtüenH
RtUvcat;TukCanirakrN¾.maRta 47
rdæmRnþITTYlbnÞúkTIsþþIkarKN³rdæmRnþI rdæmRnþIRksYgesdækic© nighirBaØvtßúrdæmRnþIRKb;RksYg saßb½n rdæelxaFikar RKb;rdæelxaFikardaæn GPi)alRKb;extþ Rkug RbFanshRKassaFarN³RtUvTTYl GnuvtþGnuRkwtüenH tamParkic©erog²xøÜn cab;BIéf¶cuHhtßelxateTA.BakübMeBj nigGkSrkat; énGnuRkwtüsþIBIlT§kmµsaFarN³-Gvbls³ karGnuvtþviFan nigbTb,BaØtiþ sþIBIlT§kmµsaFarN³- IRRPP: Implementing Rules and Regulations Governing Public Procurement
- Kbvb³ KN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa- PEAC: Pre Qualification, Evaluation and Award Committee
81
- Gl³ GgÁPaBlTÁkmµ- PU: Procurement Unit
- sl³ sßab½nGnuvtþlT§kmµ- PE: Procuring Entity
- dbG³ karedjéføedayRbkYtRbECgCalkçN³GnþrCati- ICB: International Competitive Bidding
- dbs³ karedjéføedayRbkYtRbECgkñúgRsuk- NCB: National Competitive Bidding
- Bf³ karBieRKaHéfø- Sh: Shopping
- st³ karsÞg;tMél- Ca: Canvassing
- kp³ karcuHkic©snüa- DCo: Direct Contracting
- kGC³ karcuHkic©snüaCamYyGgÁPaBCMnajénsaßbn½GnuvtþlT§kmµ
- FA: Force Account
- lPs³ lT§kmµPaKkmµshKmn¾- CPP: Community Participation in Procurement 82
Donor-Assisted ProcurementsDonor-Assisted Procurements Carried
Out Under SOP/PM Procedures
Procurement Sub-decree No. 14 dated 2007 disseminating:
- Standard Operating Procedures (SOP)- Procurement Manuals (PM)
The Procurement Manual
Policies and procedures for the procurement of goods, works, and consulting services
For Externally Financed Projects / Programs in Cambodia
84
Project Cycle
85
Evaluation 61
Identification
2Preparation
3 Appraisal
4 Loan/Grant Negotiation & Board Approval
5Implementation
PFMRP Procurement Plan
The Procurement must be carried out using the following procurement methods
1. International Competitive Bidding (ICB)2. National Competitive Bidding (NCB)3. National and International Shopping (NSH &
IS)4. Selection based on Consultants Qualifications
(CQS)
This training material for the PFMRD project will focus on the above procurement methods
86
Economy and Efficiency
Suitability of the goods/equipment/services purchased.
The useful life.Operating, maintenance and servicing
costs.Availability of after sales service The delivery period.Onward transportation costs.Storage costs.The time taken to procure the goods
87
Equity
Eligible suppliers provided equal opportunities
Ensure equitable grounds for competition A fair basis on which to compete
88
Ethical StandardsCode of Business Ethics
No individual shall use his authority or office for personal gain
An individual shall seek to maintain and enhance the reputation of the Government
Conflict of interests & personal relationshipsConfidentiality and accuracy of information All shall be treated with fairness and
impartiality No business gifts will be accepted A moral and ethical responsibility to report
any unethical conduct
89
Fraud and Corruption“corrupt practice” “fraudulent practice” “collusive practices” “coercive practice”The ADB will cancel the portion of the
Grant/Loan allocated to the contract Declare a consultant or firm ineligible Permit the Government and the WB to
inspect accounts and records
90
Conflicts of InterestDeclare any potential conflicts of interest Bidders and consultants with potential
conflict of interest are not eligible Firms hired for project design, and
implementation are not eligible to provide goods, works or services
91
Transparency in the Procurement Process
The general procurement notice Specific procurement notices UN Development Business on line Development Gateway’s dg Market News Paper of national circulation (The above requirements are mandatory for all
ICB contracts)
92
Procurement Roles and ResponsibilitiesManual on Standard Operating Procedures
for Foreign Assisted Projects MEF will undertake an oversight roleMEF representative on the Procurement
CommitteeFor EAs as provided in the project/grant
agreement Financial limits at which decisions can be
determined at the start of each project
93
Project Management Units
A Project Management Unit (PMU) with the delegated authority to implement the project
The PMU acts as the focal point for project implementation
It undertakes all of the core procurement activities required for the project
94
Procurement Responsibilities Project Director
Approves and signs contracts, invoices and important procurement documents
A member of the procurement committeeOverall responsibility for ensuring that the
ADB and the Government’s Procurement Guidelines are followed
Ensures that all mandatory reports are issued on time
95
Procurement Responsibilities/ …Cont.Project Manager
Approves and signs contracts, invoices and procurement documents below an agreed threshold
A member of procurement committeeThe primary contact for all formal
communications relating to procurement Ensures that all procurement monitoring
and reporting is undertaken in a timely and efficient manner
Leads all negotiations Chairs and supervises all bid openings
96
Procurement Responsibilities/ …ContSenior Administrative Officer
Assists the Procurement Officer to draft the overall project procurement plan
Assists the Procurement Officer in the monthly updating of the overall project procurement plan
97
Procurement Responsibilities/ …Cont
Chief Financial Officer Supervises the management of all
financial transactions and payments As a member of the procurement
committee, undertakes financial pre or post qualification review
Attends bid openings, verifies and records the bid securities that may be required
Receives and arranges for the safe keeping of all bid securities
98
Procurement Responsibilities/ …Cont.
Technical Officer Drafting, or supervising the drafting of, all
specifications, scopes of work and terms of reference
Assisting the Procurement Officer in selecting the appropriate evaluative criteria, special conditions of contract and contractual performance indicators
Manage and administer the implementation of contracts
Monitors and evaluates progress and performance of technical staff, consultants, and contractors
99
Procurement Responsibilities/ …ContProcurement Officer
Drafting and updating the project’s general procurement notice (GPN)
Quantify the goods works and services required Group the goods works and services required
into packages Preparing the overall project procurement plan Update the overall project procurement plan
each month Drafting specific bidding documents Prepare and issue through the Project Manager
Specific Procurement noticesSubmit the documents through the Project
Manager to the WB
100
Procurement Responsibilities/..Cont.Procurement Officer
Distribute copies of the Invitation for Bids to all relevant firms
Distribute the bidding documents Respond to all clarification requests received Ensure that the venue for bid opening is
adequate and that logistical arrangements are in place
Receive all bids and proposals ensuring their secure storage
Undertake the public opening of bids Review and pass all bid securities to the
Financial Officer at bid openingUndertake preliminary evaluation of all bids
and proposals Facilitate the technical evaluation of all bids
and proposals received 101
Procurement Responsibilities/ …ContProcurement Officer
Seek clarifications to bids and proposals as required to complete the evaluation
Draft the Bid Evaluation Report for review Respond to queries raised on the evaluation
report from oversight agencies or the ADBPrepare draft contractsEnsure that the relevant oversight agencies
are provided with copies of contactsIssue the notification of awardDraft the documentary requirement for any
letter of credit Monitor suppliers/contractors/consultants
performance against the contract 102
Procurement Responsibilities/ …Cont
Procurement OfficerReview all payment requests received Ensure that either the performance
security or retention monies are in place to adequately protect the Government
Ensure that all performance securities and retention monies are returned to the supplier or contractor upon the satisfactory completion of their contractual obligations
Act as The Secretary to the Procurement Committee
103
The Procurement CommitteeReview the scope of each procurement
package prior to commencement Review all Bidding Documents (BD) and
Requests for Proposals (RFP)Attend and supervise the public opening of
bids and proposalsReview evaluation and approve evaluation
reports for goods and works Individually and independently undertake
the evaluation of proposals
104
Procurement Committee Formation and ThresholdsCommittee on minor procurement
review and approve all goods up to the value of US$ 25,000
review and approve all works contracts up to to the value of US$ 50,000
Review and approve all service contracts up to the value of US$ 5,000.
Chaired by the Project Manager and include the Project Technical Officer and a representative of MEF
105
Procurement Committee Formation and Thresholds
General committee on procurementReview and approve all goods ranging in
value: US$ 25,000 - 500,000Review and approve all works contracts to
the value: US$ 50,000 - 3,000,000Review and approve all service contracts
from US$ 5,000 - 500,000Individually and independently undertake the
evaluation of all contract proposals
106
Procurement Committee Formation and Thresholds
General Committee on ProcurementChaired by the Project Director. The members
will be the Project Manager, one representative from the EA (and not a member of the PMU) and one or two representatives from MEF at the discretion of MEF.
In the event that MEF only designates one representative for a particular meeting the Project Financial Officer will be invited to become a Committee member for that meeting.
107
Procurement Committee Formation and ThresholdsMajor Committee on Procurement
review and approve all goods above the threshold value : US$ 500,000
review and approve all works above the threshold value : US$ 3,000,000
Review and approve services above $500,000
Individually and independently undertake the evaluation of all contract proposals above the threshold value
108
Procurement Committee Formation and ThresholdsMajor Committee on Procurement
Chaired by the Head of the EA or a duly authorized representative
Project Director One representative appointed by the head of
the EA Two representatives from the MEF
109
Procurement Committee Formation and ThresholdsThe Project Director or MEF may invite any
number of observers to the meetings of each Procurement Committee meeting
In the event that authority or approval is required by a Committee member from his/her parent organization, the Chair of the Committee will set a deadline for obtaining such approval
110
Methods of Procurement
The Procurement of GoodsThe Procurement of Civil WorksThe Procurement of Consulting Services
111
Methods of Procurement, Goods
International Competitive Bidding (ICB)Limited International Bidding (LIB)National Competitive Bidding (NCB)Shopping (NS or IS - either national or
international)Direct Contracting (DC)
112
Methods of Procurement, Goods
International Competitive Bidding (ICB) In most cases the preferred method;Must adopt the ADB’s standard documents; Used when the value is above US$100,000;Provides a wide range of choices from
competing suppliers; Provides the suppliers (or potential suppliers)
adequate, fair and equal opportunity; Advertised both nationally and internationally
113
Methods of Procurement, Goods
Limited International BiddingIdentical to ICB, the same standard
document of the World Bank is used but no advertising
The goods or equipment is highly specialized and there are only a limited number of suppliers
The items are proprietary For an urgent repeat order
114
Methods of Procurement, GoodsNational Competitive Bidding
Value is below US$100,000 or as stated in the Loan/Grant Agreement
Advertised nationally All suppliers both foreign and national are
eligible to bid No domestic preference is applicable Standard National Competitive Bidding
document issued by MEFUse of this document for NCB is mandatory
115
Methods of Procurement, GoodsShopping (International and National)
For values below US$ 20,000Compares the priced quotations Above US$5,000 will be advertised Quotations are sealed and opened in publicUsed for off the shelf items, when
standardization is important and exceptional circumstances as approved by MEF/ADB
Uses standard bidding documents issued by MEF
116
Methods of Procurement, Goods
Direct Contracting (DC)Should be used as little as possible No competitionFor procurement of less than $500The contract is negotiated May be used in exceptional cases with the
prior approval of MEF/WB
117
Methods of Procurement, WorksInternational Competitive Bidding (ICB)
In most cases the most appropriate method Used when the value is above US$300,000Must use the WB’s standard bidding
documentsProvides a wide range of choices from
competing contractors Provides the contractors adequate, fair and
equal opportunity Advertised both nationally and internationally Open to all who purchase the bidding
document118
Methods of Procurement, WorksLimited International Bidding
Identical to ICB, the same standard document of the ADB is used but no advertising
The works are highly specialized and there are only a limited number of contractors
The works are proprietary For an urgent repeat order
119
Methods of Procurement, WorksNational Competitive Bidding
Value is below US$300,000Advertised nationally All contractors both foreign and national are
eligible to bid No domestic preference is applicable Standard National Competitive Bidding
document Use of this document for NCB is mandatory
120
Methods of Procurement, WorksShopping (International and National)
For values below US$ 20,000Compares the priced quotations Above US$5,000 it will be advertised Quotations are sealed and opened in publicUsed for off the shelf items, when
standardization is important and exceptional circumstances as approved by MEF/ADB
Uses standard documents issued by MEF
121
Methods of Procurement, WorksDirect Contracting (DC)
Should be used as little as possible No competitionOnly when specifically allowed under the
projects Loan/Grant agreementMay be used in exceptional cases with the
prior approval of MEF/ADB
122
Methods of Procurement, WorksForce Account
Government’s own workforce, equipment and resources are used
The quantities of works cannot be defined in advance
Works are small and at scattered locations There is a natural disaster or similar
emergency needing immediate attentionHas the endorsement of the MEF/ADB
123
Methods of Procurement, Services All service procurement with the exception of single source must be advertised nationally. Service procurements above $100,000 must be advertised internationally
124
Oversight, Accountability and Good GovernanceBasic DefinitionsCharacteristics of Public Sector AuditingExternal and Internal Audit: DifferencesExternal AuditInternal AuditPre-Award Audits (n/a for Cambodia)Post-Award Audits
Basic DefinitionsOversight: supervision or watchful care
Accountability: liable or answerable.
Transparency: adhering to published rules
Good Governance: How Government uses a country’s resources for the public good
Characteristics of Public Sector AuditingAudit provides an independent, objective, and
a professionally conducted assessment about the veracity, accuracy, credibility and reliability of information.
Traditionally, audit is seen as a service, provided by independent professionals strictly observing generally accepted standards of performance. A professionally executed audit can provide a fact-based and objectively-derived opinion.
External and Internal Audit: Differences and Similarities
The essential difference between external and internal audit is that internal audit is part of the organization being audited, while external audit is not. External audit in the public sector reports to parliament and is considered part of legislative oversightInternal audit in the public sector reports to the executive and is considered to be part of executive oversight.
External AuditExternal auditors are those who are outside
of, and independent from, the entity subject to audit. Reporting is usually to third parties. In the public sector, external audit is generally external to the Executive Branch of government. In the private sector, external auditors are appointed at the annual meeting of shareholders of an entity, usually to conduct an audit of the entity’s annual financial statements.
SupremeCourt
SupremeCourt
BPKBPK
State Ministry for Administrative Reform
State Ministry for Administrative Reform
Government Boundaries
1945 Constitution
PresidentPresidentConstitutionalCourt
ConstitutionalCourt
DPDDPD
State Ministry for BUMN
State Ministry for BUMN
RegionalGovernments
Minister
Echelon1 Inspectorate
General
Line UnitsLine Units
Line Units
Central Government
SPI
BUMN
SPISPIBUMNBUMN
SecretarySecretary
GovernorGovernor
Line UnitLine Unit
BawasdaBawasda
DPRDDPRD
Bupati/MayorBupati/Mayor
Line UnitLine Unit
BawasdaBawasda
SecretarySecretary
DPRDDPRD
MoHAMoHA
JudicialCommission
JudicialCommission
MPRMPR DPRDPR
SPI
BUMD
SPISPI
BUMDBUMD
Legend: Ministry and Non Ministry Agency Level
Provincial Level
District
Command
CoordinationAudit Mandate
Audit Institutions
Audit Reporting
BPKPBPKP
Internal AuditInternal auditing is an independent, objective
assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Pre-Award AuditBefore the award of a government contract
Purpose: to independently determine the fairness and reasonableness of a bidder’s price
A critical step when competition is lacking
Post Award AuditAfter the award of a government contract, if
permitted by statute or a contractual provision
Purpose: to determine the completeness and accurateness of factual representations, and therefore recover excess profits
Case Studies (time permitting)You chair the Procurement Review
Committee and the following situations arise. What action do you take in response to these situations?
Case No. 1: There are five other Committee members. During the evaluation of proposals Bidder XYZ is ranked number one. Then, one member states “I heard Bidder XYZ was going into bankruptcy. We don’t want to award a contract to a firm on the verge of bankruptcy, they can’t perform the work!” Another Committee member states she also heard of Bidder XYZ’s poor financial situation, and the fact that it may face bankruptcy. What should you do?
Case No. 2: Five bidders have submitted proposals that are valid for a period of ninety (90) days. It is now the 87th day and the evaluation is taking longer than expected, and cannot be completed by the 90th day because key officials are on an international mission. What should you do?
Case No. 3: Five bidders timely submitted their proposals on Friday afternoon at 5:00 pm. Your ministry safely stored the proposals pending evaluation. On Monday morning, a representative of Bidder XYZ visits you to request you to accept his firm’s proposal, which was due Friday at 5:00 pm, because his flight from Bangkok was delayed. What should you do?
Case No. 4: The same situation as Case No. 3, except the representative of Bidder XYX offers you $500 to accept his firm’s proposal, and mark it timely submitted. What should you do?
Case No. 5: The financial proposals of five bidders are opened, and Bidder XYZ is lower than the other four bidders by 25%. When the time to sign the contract comes, Bidder XYZ refuses to commit to the contract, stating it would lose money, but it will sign if the price is increased by 20%, still making it the lowest price offered. What should you do?
Case No. 6: Proposals from three firms have been evaluated, and Bidder XYZ has been evaluated the highest, primarily based on the qualifications of Professor Dr. Big Shot, an internationally noted Engineering expert. Just prior to the time the contract is to be signed, Bidder XYZ wants to substitute Mr. Nobody instead of Professor Dr. Big Shot. What should you do?
Thank You!