Public Procurement ReformsPublic Procurement Reforms

By. Naeem Abbas PPRA

Definition of Government Definition of Government ProcurementProcurement

Procurement by government agenciesProcurement by government agenciesPublic Sector OrganizationsPublic Sector Organizations

•With major Govt. Equity With major Govt. Equity •With minor Govt. Equity With minor Govt. Equity •Under control of Govt. (No Govt. Equity)Under control of Govt. (No Govt. Equity)•Orgs with other forms of Govt. fundingOrgs with other forms of Govt. funding

Objectives of Procurement Objectives of Procurement ReformsReforms

Economy (Value for money)Economy (Value for money)EfficiencyEfficiencyTransparencyTransparencyAccountabilityAccountabilityCompetitivenessCompetitivenessFairnessFairness

Past Regulatory EnvironmentPast Regulatory Environment

Procurement under GFR Procurement under GFR Procurements by Corporate SectorProcurements by Corporate SectorProcurements by Statutory BodiesProcurements by Statutory BodiesClassified Procurements Classified Procurements

Present Regulatory FrameworkPresent Regulatory Framework

Enabling Legislation Enabling Legislation PPRA Ordinance 2002PPRA Ordinance 2002Subsidiary LegislationSubsidiary Legislation

•Public Procurement Rules, 2004Public Procurement Rules, 2004•Public Procurement Regulations Public Procurement Regulations

Composition of PPRA BoardComposition of PPRA Board Secretary, Finance Division: Secretary, Finance Division: ChairmanChairman Secretary, MoI &P: Secretary, MoI &P: MemberMember Secretary, D P Division:Secretary, D P Division: MemberMember Secretary, MoW & P:Secretary, MoW & P: MemberMember Secretary, Mo H & W:Secretary, Mo H & W: MemberMember Secretary, M o C:Secretary, M o C: MemberMember Syed Nizam Shah: Syed Nizam Shah: Private MemberPrivate Member Mr. Javed Hussain:Mr. Javed Hussain: Private MemberPrivate Member Mr. Munawar Hameed: Mr. Munawar Hameed: Private MemberPrivate Member Managing Director (PPRA): Managing Director (PPRA): MemberMember

Functions of PPRAFunctions of PPRA Monitor application of the procurement laws, Monitor application of the procurement laws,

rules, regulations, policies and procedures;rules, regulations, policies and procedures; Monitor the implementation of and evaluate Monitor the implementation of and evaluate

laws, rules, regulations, policies and laws, rules, regulations, policies and procedures, inspections and quality of procedures, inspections and quality of goods, services and works and recommend goods, services and works and recommend reformulation thereof;reformulation thereof;

Recommend to the Federal Government Recommend to the Federal Government revisions in or formulation of new revisions in or formulation of new procurement laws, rules and policies;procurement laws, rules and policies;

Functions (Contd.)Functions (Contd.) Make regulations and lay down code of Make regulations and lay down code of

ethics and procedures for public ethics and procedures for public procurement;procurement;

Monitor public procurement practices and Monitor public procurement practices and make recommendations to improve make recommendations to improve governance, transparency, accountability governance, transparency, accountability and quality of public procurement;and quality of public procurement;

Monitor overall performance of procuring Monitor overall performance of procuring agencies and make recommendations for agencies and make recommendations for improvements;improvements;

Functions (Contd.)Functions (Contd.) Provide and coordinate assistance to Provide and coordinate assistance to

procuring agencies for developing their procuring agencies for developing their institutional framework;institutional framework;

Call any functionary of procuring agencies Call any functionary of procuring agencies to provide assistance.to provide assistance.

Steps Involved in Redesigning Steps Involved in Redesigning New ProceduresNew Procedures

Study of Existing ProceduresStudy of Existing ProceduresIdentification of Redundant & Non Identification of Redundant & Non Transparent ProceduresTransparent ProceduresRedesigning New ProceduresRedesigning New ProceduresEmergency ProceduresEmergency Procedures

Procurement CycleProcurement CyclePlanning/Designing

specifications

Solicitation of Bids

Bids opening and Evaluation

Contract Award

Grievance Redressal

Contract Administratio

n

Payments

Pre-qualification

Public Procurement Rules, 2004Public Procurement Rules, 2004 Main Features Main Features

Protection to Intergovernmental Protection to Intergovernmental commitments & International Agencies commitments & International Agencies Integrity Pacts. Rs 10 million and Integrity Pacts. Rs 10 million and aboveaboveProcurement PlanningProcurement PlanningLimitation on Splitting of TendersLimitation on Splitting of TendersPromotion of stipulating generic Promotion of stipulating generic specificationsspecificationsBid Evaluation Criteria to be stated in Bid Evaluation Criteria to be stated in Invitation to BidsInvitation to BidsMethods of AdvertisementMethods of Advertisement

Public Procurement Rules, 2004 Public Procurement Rules, 2004 Main Features Main Features

Limitation on NegotiationsDate of Exchange Rates to be prescribed in the bidding documentsGrounds for rejection of bids to be intimated to unsuccessful Bidders

Prequalification/Qualification & Prequalification/Qualification & Disqualification of ContractsDisqualification of Contracts

Relevant ExperienceCapabilities – Personnel/EquipmentFinancial Position Managerial capabilities of the contractorDisqualification & Blacklisting of consultants and contractors

Solicitation of ProposalsSolicitation of ProposalsSelection of Appropriate bidding processWide advertisement for competitive bidsEvaluation criteria declared in advanceSelection of Appropriate Bidding Documents

Procedures of Open Competitive Procedures of Open Competitive BiddingBidding

Open Competitive Bidding, Principal MethodSingle 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.

Alternative Methods of Alternative Methods of ProcurementProcurement

Petty PurchasesRequest for QuotationsDirect ContractingNegotiated Tendering

ImplementationImplementation

Information Dissemination Advisory Services Complaint Redressal Preliminary Dispute Resolution Mechanism

MonitoringMonitoring

Internal Pre/Post Audit ProceduresAudit by the Auditor General Procurement Audits by Private Sector Auditors

Grievance RedressalGrievance Redressal

Committees within procuring entity 2nd tier grievance redressalMohtasib’s officeJudicial Remedy

Payment RegulationsPayment Regulations

On account paymentsClosing of Contracts

Closing of ContractsClosing of Contracts

Resolution of Contractor’s ClaimsCompletion of Project ReportsHistorical Files to Retain: Requirements of Auditor GeneralPost Completion Evaluation

Contract AdministrationContract Administration

Execution & Management of ContractsAppropriate Funds Availability Payments to ContractorsTracking Supply SchedulesManagement of changes/variations to Procurements

Our ApproachOur ApproachTwo Step Regulations

•General Regulations applicable on all Public Sector Procuring AgenciesAdvertisement of Requirements, Time for submission of bids, Bid evaluation criteria and its publicity, level of advertisement, etc

•Organization Specific Regulations

Specific circumstances of PSE’s Delegation of Powers, Declaration of Emergency and Emergent Procurement Procedures, Payment Procedures etc.

Thank YouThank You