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Post Review of Procurement by World Bank

Post Review of Procurement by World Bank. Key Observations. States covered:. Assam Karnataka Maharashtra Uttar Pradesh. Key Observations. Key observations shared with the concerned States on 28 th July 2011 for comments. Post reviewed 130 contracts, at SPO and DPO.

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Post Review of Procurement by World Bank

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  1. Post Review of Procurement by World Bank

  2. Key Observations States covered: Assam Karnataka Maharashtra Uttar Pradesh

  3. Key Observations • Key observations shared with the concerned States on 28th July 2011 for comments.Post reviewed 130 contracts, at SPO and DPO. Summary of Observations ASSAM • Contract amount for procurement of school bag was ` 106.30 lakh but the payment made for ` 454.90 lakh without issue of repeat order or revision of purchase order. In excess of open tender threshold of US $ 300,000 equivalent

  4. Key Observations • Not maintained bidding period of 30 days for open tender of procurement of sitting mat • Exceeded the threshold of US$ 30000 for single contract for the purchase of 10 KVA generator under DGS&D Rate contract. • Computers and its accessories amounting to ` 349.55 lakh procured under DGS&D Rate contract instead of open tender. • Procurement of digital camera under limited tender was made inviting 4 quotations but 2 bidders were having the same address.

  5. Key Observations • Entire procurement cycle for the purchase of laptop was completed within two days. • Two bidding documents issued on the same day for purchase of water bottle for Class I & IV (` 184.78 lakh) and Class III & IV (` 171.28 lakh) which exceeded the open tender threshold of US $ 300,000 equivalent. • Delivery details and invoice details not made available during review for printing and supply of evaluation of workbooks for Class V. • Procurement process was not reviewed as per TOR for hiring of external auditors and internal auditors.

  6. Key Observations • Fraud and corrupt (F&C) indicator as the awadee is one among the related quotations submitted and effectively reduces the number of quotations for purchase of wooden cots. • Not stipulated rationale delivery period for purchase of stationery. • Payment was made based on provisional bill and delivery period not stipulated for purchase of generator period. • Delay in supply of stationery items. • Entire procurement cycle was compelted within 3 days and unrealistic delivery period for supply of furniture ,TLM and generator.

  7. Key Observations • All 3 quotations were in similar format and same hand writing. • The dates issued for work order and delivery / invoice / payment dates on the same day. • KARNATAKA • Restrictive tender clause and subjective evaluation. • Delay in delivery / supply of material. • Not indicated date of opening of quotation in RFQ • Purchase order does not indicate terms and conditions

  8. Key Observations • Single tender method adopted instead of limited tender. • Possible F&C for purchase of UPS . • Delay in issue of work order defeats the purpose of limited tender. • Invoice and delivery date before work order date. • Bid security DD having sequential numbers. • L1 and L2 share same telephone numbers. • In another case, L1 and L3 share same telephone numbers. • Date of delivery not available in file.

  9. Key Observations • Date of delivery, invoice details, payment details not available in file. • Brand specific procurement for Samsung Air Conditioner and V-Guard stabilizer. • Details not mentioned in RFQ and PO. • Deliverables on statutory auditors and internal auditors not complied. • Quantity of mathematics textbooks increased by 30%. • RFP and TOR are included qualification and evaluation criteria for appointment of District Engineers and Block Engineers.

  10. Key Observations • MAHARASHTRA • Splitting of requirements of computers to avoid open tender. • Purchase order under DGS&D Rate Contract was placed 2 months before the expiry of the rate contract resulting in procuring computers of one year old specifications. • Contract copy for purchase of Microsoft Office 2007 not available in the file. • Monthly progress report on 3rd Party evaluation of civil works does not provide number of works completed in time, cost savings achieved or other parameters like time / cost overruns and the area requires attention from MPSP or the district engineer.

  11. Key Observations • Contract signed, date of invoice and date of cheque are on the same day. • Completed procurement cycle within one day. • Quotations from 2 firms are on the same hand writing . • Followed Zilla Parishad Procurement Procedure instead of FM&P Manual. • Hearing aid procured under single tender basis. • Delay in delivery of green boards since December 2008. • In the absence of any stipulation in the contract agreement 60% payment was released to the external auditor.

  12. Key Observations • UTTAR PRADESH • Procured items not taken into fixed asset register and not mentioned the warranty as comprehensive. • Minor error in the purchase order/invoice amount and amount paid. • Failure to mature the procurement process, resulted in non-availability of 3rd Party consultants for civil works quality. • Entire procurement cycle was completed from 6 March 2010 till 31st March 2010 but the goods received on 1st May 2010. • Single tender adopted for construction of composite schools (` 35.62 lakh).

  13. Key Observations • Invoice dated 31st March 2010 but delivered on 27th April 2010 resulting in delay in delivery. • Entire procurement cycle was completed with 2 days. • Stipulated unrealistic delivery period. • Not stipulated warranty terms in PO. • Liquidated damages not charged though stipulated in PO. • Invoice date prior to the placement of PO and payment. • Tower Server not installed since its receipt entails to under utilization for the procured goods. • Procured goods were not traced in the location (0.8 KVA and 1 KVA UPS)

  14. Key Observations • Cheques were drawn and kept ready before the placement of purchase order. • 50% payment was made upfront for maintenance of computers. • Hand-pumps to various schools procured on single tender basis. • Confirmation on the receipt of hand pumps from BRC not available in file. • Substantial delay in delivery and payment • Computer purchased received on 28-5-2010 but not found installed during the site visit. • Mismatch between specified in PO and supplied. Upon noticing and communicating, the items were found not replaced (based on site inspection)

  15. Key Observations • Installation of Server not done and however, certified by the computer operator for making payment • Procurement procedure followed for primary kit was not in line with Para 115.20, 21 and 22 • Stringent penal action proposed in the tender document • Quality assurance committee commented on the quality of text books, however, no deduction recommended. • Delay in delivery and completion of text books • Delay in payment of text books

  16. Thank You

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