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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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
Session: M1-1 Slide No.4/24
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
Session: M1-1 Slide No.5/24
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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:
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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:
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
Session: M1-1 Slide No.12/24
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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]
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
Session: M1-1 Slide No.22/24
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
Session: M1-1 Slide No.23/24
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
CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop
Session: M1-1 Slide No.24/24e-Procurement System