PSM-501

Sourcing & Procurement

Assignment on

Use of e-tendering in Public Procurement :

Status & Strategies in Bangladesh

Submitted To
Mr. Shish Hayder Chowdhury
Procurement and Supply Chain Department
BIGD, BRAC University

Submitted by
Ranapriya Barua
ID No. 18282017
MPSM fall 2018
Date : 29 Nov 2018.
 Use of e-Tendering in Public Procurement t
Status and Strategies in Bangladesh

e-Tendering means carrying out all traditional tendering activities in an electronic form, using the
internet. e-tendering is a part of the electronic government procurement (e-GP). In Bangladesh,
the history of e-GP is not so long. Before 2006, there was no procurement law in Bangladesh.
Government officers used to form 2908 for goods purchase and form 2911 for works purchase in
public procurement. Most of the time procuring entities are facing problem by cadder who are
showing the force to get the work from different project though they don’t have any experience.
But now in e-GP system the bidders need not be physically present to submit their tenders to the
PE’s. They can submit tenders online from home. This will widen the opportunity for competition.

The basic objective for e-Tendering is to bring security, authenticity and accountability into the
tendering process. Additional benefits including saving on time, efforts and money involved in the
procurement cycle for both the supplies and the bidder. e-Tendering offers comparative and
qualitative comparisons among bidders to facilitate an accurate evaluation process.

In Bangladesh, procurement reform process began in 2002 when World Bank Country
Procurement Assessment Report (CPAR) was published. CPAR identified several areas of
improvement in the country’s public procurement practice, including absence of legislations,
bureaucratic processes, manual procedures, capacity constraints and usually delay. To address
them all, first the technical aspects of reform were set in place; an institutional and legal
framework was developed. Further, a central regulatory agency, a central procurement technical
unit (CPTU), with IMED of the planning ministry was also established in 2002. Then gradually
published Public Procurement Regulation-2003, Public Procurement Act-2006, Public
Procurement Rules-2008 and e-GP guidelines-2011. This document provides principle guideline
of e-GP system of Bangladesh as provisional under section 65 of PPA-2006 and rules 128 of
PPR-2008 for the e-GP System. This guidelines demonstrate government commitments to
achieve the greater openness and accountability in government procurement process.

e-tendering starts in Bangladesh at the end of June, 2010 primarily within 4 (four) government
department i.e LGED, RHD, WDB & REB. Now, the number of tenderers registered with e-GP
system has crossed 50000 as on 22 October 2018, the numbers stood at 50094. This tendering
system save time and cost. Recent study shows that, under e-GP systems competitor has
increased from 4 nos. in 2007 (Manual system) to 8 nos. in 2017 (e-GP System). Until 22
October, 2018 a total 2,15,617 tenders involving a total of 1 Lac 98 Thousand Crore Taka were
involved through e-GP. Now the number of government procurement agencies stood at 1267 out
of total 1324 in the country. e-GP system is a single uniform national web-portal. It has
centralized registration system. It also enables automatic performance monitoring (e-PMIS). This
system has robust security features & backup arrangement with full reduncy to ensure
uninterrupted service. It is a self sustainable model system is generating adequate fund.
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Tenderers and procuring agencies can take e-GP support from the 24 x 7 help desk established
in CPTU through 16575 from any number any where. These operation save time, reduce hassles
and ensure transferency through widening access to public information. Under the e-GP system
the whole cycle of procurement done electronically.

In Bangladesh about 75 percent of the development budget is spent on procurement of goods,

works & services. e-GP system increased in significant cost saving for both procuring agencies
and the tenderers. Recent study shows that, by introducing e-tendering, Bangladesh enjoy cost
saving for government from 0% in 2007 (manual system) to 13-20% in 2017 (e-GP System),
efficiency on number of tenders awarded on schedule from 10% in 2007 (manual system) to
85%, in 2017(e-GP System), transferency on information about contract and awards available to
the public 15% in 2007(manual system) to 100% in 2017(e-GP System), competitor on average
number of responsive tenders per invitation 4 nos. in 2007(manual system) to 8 nos. in 2017(e-
GP System).

Recently CPTU noticed that now e-GP application open for more then 100 crore in all national
work and goods tender.

As the planning in the second phase, e-Contract Management System(e-CMS) is supposed to

introduce covering complete contract management processes such as work plan submission,
defining mile-stone, racking and monitoring progress, generation reports, performing quality
check, generation of running bills, vendor rating and generation of completion certificate.

In future e-sourcing, e-payment, e-auction, e-contract management will be incorporated in e-GP

system. Contract Management in e-GP are formulate Public asset disposal policy, reverse
auction, expert citizen engagement, achieve SDG goal of making procurement sustainable
through life cycle cost analysis and evaluate social, economic and environment report.

But there are some infrastructural problem like low internet connectivity and shortage of power
for what e-tendering is not becoming explore largely. All participant are not capable to use the e-
tendering as because of lack of knowledge of technology, shortage of power supply and low
internet connectivity particularly in rural areas of Bangladesh.

In a nutshell, it is said that by introducing e-tendering in public procurement in Bangladesh save

time and cost, enhance competition, improve efficiency, bring transparency and remove
corruption in the process of procuring goods, works and services.

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