DISADVANTAGES OF

IMPLICATION OF PPRA RULES Bakhtawar Saleem- 2133066

Fatima Waqar - 2131040

Sabahatullah Khan – 214112

Shoaib Tauseef-

Mohammad Zafar Sajjad - 2141157

CHANGED MECHANISM

Resistance to Change

Conflicts

Trainings

Over all costs up

CORRUPTION

Unfair competition Not only in money but also in

Quality No laws or effective legal protection Instead , an accretion of complex

laws, rules, regulations, codes and manuals

PROCESS IS BUREAUCRATIC

Number of unnecessary procedures

Short notice for bids

Prior notices to favored bidders

LIMITATION ON URGENCY

It’s difficult to purchase items in urgency

Except in case of emergency ,disasters, climates, accidents or wars etc

APPROVAL MECHANISM Initiate procurement once approval of

the competent authorities.

PRE-QUALIFICATION OF SUPPLIERS & CONTRACTOR

•Expensive and technically complex equipment

CLARIFICATION OF BIDS No bidder shall be allowed to alter or

modify after the bids have been opened

METHODS OF ADVERTISEMENT Authority website Newspaper shall appear in at least two

national dailies English and Urdu

NEGOTIATIONS General Increase in the Bid Polling of the Contractors Mutually Decided Prices Post Award Negotiations

ABUSE OF DOMINANCE Prevent New Entrants Cause of Favored Decisions Predatory Pricing

LIMITING THE NUMBER OF SUPPLIERS Technical Specification rather than

Generic Financial Limits to Quote the Bid

BIDDING PROCESS Opening Of Bids Evaluation of Bids Rejection of Bids Competitive Bidding Limit

MARKET SHARING AND CARTEL FORMATION

PRODUCERS OF SIMILAR GOODS TENDS TO SHARE MARKET BASED ON THEIR UNDERSTANDINGS.

LOWER BID DILEMMA Technical weak firms may opt for low

bids in order to secure the procurement.

UPSTREAM AND DOWNSTREAM SIDE

Equal attention is required to be paid on the upstream side.

JUDICIAL, DISPUTE RESOLUTION Slowness in dispute resolution

mechanism Transaction costs increases Overall weakness in judicial system

LIMITATION ON REGROUPING AND SPLITTING Rule Announce One year plan Should not divert with plans

Disadvantages Rule is limiting the authority for any

splitting or regrouping. Ad to place in advance for annual

requirements.

SPECIFICATIONRule

Allow widest competition , Not favoring any single contractor

But not applicable on public sector.Disadvantages

Public sector can be biased. Only applicable on private sector

DOCUMENTATIONRule

A list of Documentation is mentioned for bidding.

Disadvantages Interviewed Mr Najmus Rehmani Too much Documentation Too much time consuming and unable to

complete the process of documentation on time.

May have to visit different Govt Institution for completing documentation which causes further delays.

STAKEHOLDERS CONSULTATION ON PPR REGIME

Development Partners ADB WB EU USAID

KEY POINTS HIGHLIGHTED Meeting Held on April 9, 2012 Following Disadvantages were highlighted Non transparent rules and regulations

discouraged the private sector's involvement

Advertisements were often placed near to closing dates in newspapers with limited coverage

Many government departments placed restrictions on registration of bids.

CONTD. There is no committee for answering

bidders complaints. No internal desk for Misconduct. BID Evaluation: Conclude by the

members that it is among the weakest area of PPRA. Mechanism should be developed for Bid Evaluation.

Any Question?