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 Govt. Equity)
Orgs with other forms of Govt. funding

Objectives of Procurement
Reforms
Economy

(Value for money)

Efficiency
Transparency

Accountability
Competitiveness
Fairness

Past Regulatory Environment

Procurement

under GFR
Procurements by Corporate Sector
Procurements by Statutory Bodies
Classified Procurements

Present Regulatory Framework

Enabling

Legislation
PPRA Ordinance 2002
Subsidiary Legislation
Public

Procurement Rules, 2004

Public Procurement Regulations

Composition of PPRA Board

Secretary, Finance Division:

Secretary, MoI &P:
Secretary, D P Division:
Secretary, MoW & P:
Secretary, Mo H & W:
Secretary, M o C:
Syed Nizam Shah:
Mr. Javed Hussain:
Mr. Munawar Hameed:
Managing Director (PPRA):

Chairman
Member
Member
Member
Member
Member
Private Member
Private Member
Private Member
Member

Functions of PPRA

Monitor application of the procurement laws,

rules, regulations, policies and procedures;
Monitor the implementation of and evaluate
laws, rules, regulations, policies and procedures,
inspections and quality of goods, services and
works and recommend reformulation thereof;
Recommend to the Federal Government
revisions in or formulation of new procurement
laws, rules and policies;

Functions (Contd.)

Make regulations and lay down code of ethics

and procedures for public procurement;
Monitor public procurement practices and make
recommendations to improve governance,
transparency, accountability and quality of public
procurement;
Monitor overall performance of procuring
agencies and make recommendations for
improvements;

Functions (Contd.)

Provide and coordinate assistance to procuring

agencies for developing their institutional
framework;
Call any functionary of procuring agencies to
provide assistance.

Steps Involved in Redesigning

New Procedures
Study

of Existing Procedures
Identification of Redundant & Non
Transparent Procedures
Redesigning New Procedures
Emergency Procedures

Procurement Cycle
Contract
Administration

Planning/Designing
specifications

Payments

Pre-qualification

Grievance
Redressal

Contract
Award

Solicitation of
Bids

Bids opening
and Evaluation

Public Procurement Rules, 2004

Main Features
Protection

to Intergovernmental
commitments & International Agencies
Integrity Pacts. Rs 10 million and above
Procurement Planning
Limitation on Splitting of Tenders
Promotion of stipulating generic
specifications
Bid Evaluation Criteria to be stated in
Invitation to Bids
Methods of Advertisement

Public Procurement Rules, 2004

Main Features
Limitation on Negotiations
Date of Exchange Rates to be prescribed in
the bidding documents
Grounds for rejection of bids to be intimated
to unsuccessful Bidders

Prequalification/Qualification &
Disqualification of Contracts
Relevant Experience
Capabilities Personnel/Equipment
Financial Position
Managerial capabilities of the contractor
Disqualification & Blacklisting of
consultants and contractors

Solicitation of Proposals
Selection of Appropriate bidding
process
Wide advertisement for competitive
bids
Evaluation criteria declared in advance
Selection of Appropriate Bidding
Documents

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.

Alternative Methods of
Procurement
Petty Purchases
Request for Quotations
Direct Contracting
Negotiated Tendering

Implementation

Information Dissemination
Advisory Services
Complaint Redressal
Preliminary Dispute Resolution Mechanism

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

Grievance Redressal
Committees within procuring entity
2nd tier grievance redressal
Mohtasibs office
Judicial Remedy

Payment Regulations

On account payments
Closing of Contracts

Closing of Contracts
Resolution of Contractors Claims
Completion of Project Reports
Historical Files to Retain: Requirements
of Auditor General
Post Completion Evaluation

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

Our Approach
Two Step Regulations
General Regulations applicable on all Public
Sector Procuring Agencies
Advertisement of Requirements, Time for
submission of bids, Bid evaluation criteria and its
publicity, level of advertisement, etc

Organization Specific Regulations

Specific circumstances of PSEs
Delegation
of Powers, Declaration of
Emergency
and
Emergent
Procurement Procedures, Payment
Procedures etc.

Thank You