public procurement reforms

CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

Session: M1-1 Slide No.1/24

Public Procurement Reforms

Session: M1-1


Session: M1-1 Slide No.2/24Public Procurement

“Procurement means the purchasing or hiring of Goods, or acquisition of Goods through

purchasing and hiring, and the execution of Works and performance of Services by any

contractual means

In 1999, WB and ADB conducted joint review of the country portfolio

performance and prepared an action plan for government on public

procurement


Session: M1-1 Slide No.3/24Background

Absence of sound legal framework governing public sector procurement

Complex bureaucratic procedure causing delay Lack of adequate professional competence of staff to

manage public procurement Generally poor quality bidding documents and bid

evaluation Ineffective administration of contracts Absence of adequate mechanism for ensuring

transparency and accountability

CPAR,2002 prepared by WB, in agreement with the GoB, identified several deficiencies in the procurement system of the GoB:

Government approved the implementation of the "Public Procurement Reform Project" with IDA assistance on 14 February, 2002



Set up a Public Procurement Policy Unit Issue Public Procurement Rules Streamline Proc. Process & Financial

Delegation Develop Procurement Management Capacity Publish Contract Awards Introduce Appeal Procedures

To GoB

CPAR Key Recommendations



IDA IDA CreditCredit (TA): August 2002/ (TA): August 2002/ ~$ 5 million~$ 5 million/ 4 years/ 4 years

Objectives: Improve (i) governance; Objectives: Improve (i) governance; (ii) efficiency, transparency (ii) efficiency, transparency and and accountability; accountability; (iii) people’s confidence in (iii) people’s confidence in country country systemssystems Elements of Reform:Elements of Reform:

• Establishing Procurement Policy Unit (CPTU)Establishing Procurement Policy Unit (CPTU)• Implementing Reforms/ RulesImplementing Reforms/ Rules• Improving Procurement Management CapacityImproving Procurement Management Capacity

Public Procurement Reform Project


Session: M1-1 Slide No.6/24Brief Chronicles

CPAR (joint coll. with The World Bank):CPAR (joint coll. with The World Bank): May ‘01 May ‘01

Procurement Policy Unit (CPTU) :Procurement Policy Unit (CPTU) : Apr. ‘02 Apr. ‘02

Proc Reform Project (PPRP)Proc Reform Project (PPRP) : : Aug. ‘02 Aug. ‘02

Public Proc. Regulations (PPR) : Public Proc. Regulations (PPR) : Oct. ‘03 Oct. ‘03

Imp. Procedures & Key SDsImp. Procedures & Key SDs : : Apr. & Aug. ’04 Apr. & Aug. ’04

MIS (Proc. Perform. Tracking) :MIS (Proc. Perform. Tracking) : Oct. ‘06 Oct. ‘06

Poverty Reduction Strategy Paper :Poverty Reduction Strategy Paper : Dec. ‘05 Dec. ‘05

Follow-on PPRP II : Follow-on PPRP II : Sept. 07 Sept. 07

Nat. Trainers- 25p & training- 1800p : Nat. Trainers- 25p & training- 1800p : as of Sept. ’07 as of Sept. ’07

Proc Act and Proc Rules (effective) :Proc Act and Proc Rules (effective) : Jan. ’08 Jan. ’08

Proc Act; amendment :Proc Act; amendment :July,07&Nov.’09,Jul.’10July,07&Nov.’09,Jul.’10

Proc Rules: amendmentProc Rules: amendment : : Aug. ’09 Aug. ’09


Session: M1-1 Slide No.7/24Public Procurement Reform

Project II

Despite good progress application of the national

procurement rules proven to be relatively inconsistent across government and within individual agencies, and

actual implementation of the regulations is slow with less progress in improving tangible outcomes on the ground

Potential challenges that constrain

the achievement of betterprocurement outcomes include :

inadequate enforcement of regulations delays in contract award ineffective contract

administration Inadequate procurement professionalism incidence of fraud and

corruption political interference

Why ?

To address these, a new technical assistance credit, “Public Procurement Reform Project II” was proposed to move the reform process further


Session: M1-1 Slide No.8/24Objective of PPRP II

Enhanced capacity in creating a sustained program of

developing skilled procurement professionals

Strengthened management and monitoring of procurement in target agencies

Introduction of eGP in those agencies and CPTU on a pilot basis

Creation of greater public awareness of a well functioning public procurement system by engaging civil society, think tanks, beneficiaries, and the private sector

To improve performance of the public procurement system focusing largely on the key sectoral ministries & targeting their IAs with the following outputs:


Session: M1-1 Slide No.9/24Principal Role of CPTU

Section 67 (PPA 2006)

CPTU performs the following responsibilities: monitoring compliance with and implementation of

this Act

arranging for performance of the necessary functions & responsibilities incidental thereto

performing any other responsibilities

CPTU established by the IMED of the Ministry of Planning, for carrying out the purposes of the Act &

the Rules


Session: M1-1 Slide No.10/24Further Role of CPTU

Amendlegislation

Publish bulletinon ads and

procurement

Develop aPP website

Request/receive/evaluate

info from PEs

Submit an Annual Report

to GoB

Prepare & distribute STDs

Advice &assist PEs

CPTURESPONSIBILITIES

Rule-130


Session: M1-1 Slide No.11/24CPTU & PE’s

Professional Misconduct,Offences

Completion ofthe Process

Advertisement

Suspendof Notification

of Award

Formation ofReview Panels

Submission ofComplaints

Non-discrimination

ProcurementPost Review

Recordsof Procurement

Termination &Disputes

ProcurementApproval

Procedure

Preparation ofProcurement Plan

Public accessibility of Procurement Act

CPTU

CPTU is further referenced in other issues:



Director(Capacity Dev. & Co-

ordination)

Approved Revised Structure of CPTU

1 x Director General1 x Sr. Computer Operator1 x Personal Officer1 x Photocopier Operator1 x Driver1 x MLSS

Director(Rules & Procedure)

1 x Director1 x Sr. Computer Operator1 x MLSSDeputy Director

(Works)

1 x Deputy Director1 x Computer Operator

Deputy Director(Goods & Services)

1 x Deputy Director 1 x Computer OperatorDeputy Director

(Operational & Management Services)

1 x Deputy Director1 x Computer Operator

Deputy Director(Tech. Support to Agencies)

1 x Deputy Director1 x Computer OperatorAssistant Director

(Training)

Director Monitoring & Evaluation

1 x Director1 x Sr. Computer Operator1 x MLSS

Assistant Director (M&E)

1 x Deputy Director/Programmer 1 x Computer Operator

1 x Asstt. Director1 x Computer OperatorAssistant Director

(Co-ordination)

1 x Asstt. Director1 x Computer Operator

1 x Asstt. Director1 x Computer Operator

1 x Director1 x Sr. Computer Operator1 x MLSS

Deputy Director/ Programmer

(M&E)

System Analyst(e-GP & IT)

1 x System Analyst 1 x Computer Operator

Assistant Programmer

1 x Asstt. Maintenance Engineer

1 x Assistant Programmer

Assistant Programmer / Information Analyst

1 x Asstt. Programmer/Information Analyst

Assistant Maintenance Engineer

Director General

Note : 1. Total number of staff from revenue budget of Government : 37 nos


Session: M1-1 Slide No.13/24 PPA 2006 and PPR 2008

PPA2006

PPA2006

PPR2008

PPR2008

Primary legislation focuses on main

public procurement issues

Secondary legislation addresses

those which, although being important

for a proper and effective publicprocurement procedure to be carried out, may

be better spelled out

in the secondary legislation

Guiding principle in designing PPA & PPR


Session: M1-1 Slide No.14/24Key features of PPA 2006 and PPR 2008

Gist of any secondary legislation is to flesh out the principles of law sketched out in the primary legislation

Feature of secondary legislation be more detailed

Primarily in order to provide contracting authorities with more specific indications of how public procurement procedures are carried out

PPA2006

PPA2006

PPR2008

PPR2008

This broad approach explains why there is no predefined content for secondary legislation and, conversely, it may be difficult to identify the precise boundaries within which it should be expanded


Session: M1-1 Slide No.15/24Key features of PPA 2006 & PPR

2008

Various issues in the PPA mentioned only in passing, sketched out or not dealt with at all. Few of them are:

organization, competences & procedures of the CPTU

thresholds for procurement procedures electronic procurement details of Tender & Performance Security documents required for meeting requirements

of PEs submission and opening of Tenders contract award criteria negotiations review of complaints & appeals procedure

PPA2006

PPA2006

PPR2008

PPR2008


Session: M1-1 Slide No.16/24Key features of PPA 2006 & PPR

2008

On various occasions the PPA directly requires obligatory adoption of rules/regulations

PPR 2008 prepared based on the PPA 2006, along with other relevant implementation documents, formats, models, guidelines, instructions

PPA2006

PPA2006

PPR2008

PPR2008


Session: M1-1 Slide No.17/24Scope & application of PPA 2006

PPA extends to the whole of Bangladesh

Override other laws:

Notwithstanding anything contained in any

other law, the provisions of the PPA shall prevail

Act [Section 3 & 4]


Session: M1-1 Slide No.18/24Scope & Application

PPR shall apply to :

a) Procurement by PEs using public funds

b) Procurement by any government, semi-government or any statutory body established under any law

c) Procurement using public funds by a company registered under the Companies Act, 1994 (Act No. 18 of 1994)

d) Procurement under a loan, credit or grant agreement or under any other agreement with a development partner or with a foreign state or an organisation, provided that if there is anything to the contrary in any such agreement entered into, the provision of that agreement shall prevail

Act [Section 3 & 4] & Rule - 3


Session: M1-1 Slide No.19/24Chapterwise Contents

Chapter 9Miscellaneous

Chapter 8E-GovernmentProcurement

Chapter 7ProfessionalMisconduct

Chapter 5Procurement of

Intellect. & Profess.Services

Chapter 6Processing ofProcurement

Chapter 4Methods of

Procurement forG & RS, W, PS

Chapter 3Principles of

PublicProcurement

Chapter 2Preparation of

Tender or Proposal,Committee

Chapter 1Preliminary

PPR,2008


Session: M1-1 Slide No.20/24Rule Schedules

Schedule XIIIPP Format

Schedule XIIIPP Format

Schedule XIICode ofEthics

Schedule XIICode ofEthics

Schedule XISubmission

Forms

Schedule XISubmission

Forms

Schedule XInvitation and

Request

Schedule XInvitation and

Request

Schedule IXConsultant Conflict

of Interest

Schedule IXConsultant Conflict

of InterestSchedule VIIIProcurement

Records

Schedule VIIIProcurement

Records

Schedule VIINotification of

Award

Schedule VIINotification of

Award

Schedule VIContract Award

Reporting Format

Schedule VIContract Award

Reporting Format

Schedule VProcurement

Plan

Schedule VProcurement

Plan

Schedule IVProc. Processing,

Approval Procedure

Schedule IVProc. Processing,

Approval Procedure

Schedule IIIProc. Processing,

Approval Timetable

Schedule IIIProc. Processing,

Approval Timetable

Schedule IITimes & Values

Schedule IITimes & Values

Schedule ISTDs

Schedule ISTDs

PPR,2008PPR,2008


Session: M1-1 Slide No.21/24 Provisions in Act

e-Government Procurement Section 65Section 65

e-GP is likely to serve as a tool contributing effectively to deter inappropriate and threatening tendering practices in

the country and will help fight corruption

e-GPe-GP

(1)(1) For carrying out the purposes of this Act, any For carrying out the purposes of this Act, any or all government procurement under this Act or all government procurement under this Act may be undertaken using electronic processing may be undertaken using electronic processing systemssystems

(2) The electronic processing system and the (2) The electronic processing system and the principles governing such system shall be principles governing such system shall be prescribed by the Governmentprescribed by the Government



Contract Contract E-ManagementE-Management

Low Value, High VolumeLow Value, High VolumeProcurementProcurement

(E-PURCHASING)(E-PURCHASING)

High Value, Low VolumeHigh Value, Low VolumeProcurementProcurement(E-TENDERS)(E-TENDERS)

e-Procurement: Strategy

Governments Governments BusinessBusiness



Process simplification

Quality

Improving value for money

Reducing procurement time

Public SpendingOptimizati

on

Communicating and publishing data on tender procedures and awarding criteria

Innovation

change management among public officials and suppliers through the use ofEPROCUREMENT

Transparency

e-Procurement System: goals


Session: M1-1 Slide No.24/24e-Procurement System

public procurement reforms

Documents

public procurement pprp

monitoring of procurement

procurement system

national procurement

projectobjective of

followon pprp

reform process

project ida credit ta