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Public Procurement Reforms

Public Procurement Reforms. By. Naeem Abbas PPRA. Definition of Government Procurement. Procurement by government agencies Public Sector Organizations With major Govt. Equity With minor Govt. Equity Under control of Govt. (No Equity) With other forms of Govt. funding.

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Public Procurement Reforms

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  1. Public Procurement Reforms By. Naeem Abbas PPRA

  2. Definition of Government Procurement Procurement by government agencies Public Sector Organizations With major Govt. Equity With minor Govt. Equity Under control of Govt. (No Equity) With other forms of Govt. funding

  3. Objectives of Procurement Reforms Economy (Value for money) Efficiency Transparency Accountability Competitiveness Fairness

  4. Past Regulatory Environment Procurement under GFR Procurements by Corporate Sector Procurements by Statutory Bodies Classified Procurements

  5. Present Regulatory Framework Enabling Legislation PPRA Ordinance 2002 Subsidiary Legislation Public Procurement Rules, 2004 Public Procurement Regulations

  6. Steps Involved in Redesigning New Procedures Study of Existing Procedures Identification of Redundant & Non -Transparent Procedures Redesigning New Procedures Emergency Procedures

  7. Procurement Cycle Contract Administration Planning/Designing specifications Payments Pre-qualification Grievance Redressal Solicitation of Bids Contract Award Bids opening and Evaluation

  8. Procurement Planning • Planning • Limitation on splitting or regrouping • Specifications • Approval Mechanism • International Commitments • Language

  9. Pre-qualifications of Suppliers • Relevant experience • Process • Qualification of Suppliers • Disqualification of Suppliers • Black-listing of Suppliers

  10. Solicitation of Bids • Methods of Advertisement • From Rs. 40,000 to Rs. 1.0 (Million) • Exceeding Rs. 1.0 (Million) • Response Time • ICB-30 Days • NCB-15 Days • Exceptions • National Security • Intellectual Property

  11. Method of Procurement • Open Competitive Bidding • Submission of Bids • Bidding Documents • Precise and unambiguous • Invitation to Bid • Instructions to Bidders • Form of Bid • Form of Contract • General or special conditions of Contract • Specifications and drawings or performance criteria (where applicable)

  12. Bidding Documents (Contd.) • List of Goods or bill of quantities (where applicable) • Delivery time or completion schedule • Qualification criteria (where applicable) • Bid evaluation criteria • Format of all securities required (where applicable) • Details of standards (if any) • Any other detail not inconsistent with Rules

  13. Method of Procurement (Contd.) • Reservations and Preference • Reservation in accordance with the policy of the Federal Government • Domestic preference • Bid security • Bid validity • Time to be specified in Bidding Documents • Extension of time

  14. Procedures of Open Competitive Bidding • Open Competitive Bidding, Principal Method • Single Stage. Two Envelope Procedure. • Two Stage Bidding Process. • Technical proposal without price for uniform specifications. • Price proposals on the basis of uniform technical specifications. • Two Stage Two Envelope Bidding • First stage technical proposal & financial proposal • Second Stage – Revised Technical Proposal – Supplementary Financial Proposal.

  15. Alternative Methods of Procurement • Petty Purchases, below Rs. 10,000 • Request for Quotations, below Rs. 40,000 • Direct Contracting • Acquisition of spare parts or supplementary services • Provided not available from alternative sources • Only one manufacturer or supplier exists • Change of supplier would lead to incompatibility or disproportionate technical difficulties • Repeat orders not exceeding 15% • Emergency

  16. Alternative Methods (Contd.) • Negotiated Tendering • Supplies for supporting a piece of research, experiment, study, particular development • For technical, artistic, protecting intellectual property rights • Extreme urgency • Record reasons and justifications for resorting to N.T

  17. Bid Opening and Evaluation • Opening, after min 30 minutes • Evaluation • Rejection • Re-bidding • Announcement of Evaluation Report

  18. Contract Award • Acceptance of Bid • Integrity Pact, exceeding Rs. 10 (m) • Performance Guarantee • Limitation on Negotiations • Confidentiality

  19. Grievance Redressal • Pre-award • Post-award

  20. Payments • On account Payments • Enforcing the Contract • Issuing Purchase Order only • Signing the Contract • Closing of Contracts • Resolution of Contractor’s Claims • Completion of Project Reports • Historical Files to Retain: Requirements of Auditor General • Post Completion Evaluation

  21. Contract Administration • Execution & Management of Contracts • Appropriate Funds Availability • Payments to Contractors • Tracking Supply Schedules • Management of changes/variations to Procurements

  22. Monitoring • Internal Pre/Post Audit Procedures • Audit by the Auditor General • Procurement Audits by Private Sector Auditors

  23. Thank You

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