Project Implementation
Public Procurement Management:
Md Shamimul Haque
Additional Secretary (Director)
CPTU, Ministry of Planning
National Trainer (Public Procurement, CBA and LFA)
Masters in Statistics, Dhaka University
Masters in Development Studies, GRIPS University (Japan)
Masters in Public Procurement Mgt., Turin University (Italy)
Obligation
National Constitution SDG
WTO
Citizen/Tax payers
2
Principles
• Transparency
• Accountability
• Non-discrimination
• Free fair treatment
• Integrity
Ensuring Value for Money
3
Objectives
• Efficiency ( Minimizing the cost of Procurement)
• Effectiveness ( Fulfilment of objective of procurement )
• Economy (Market comparable price of procurement)
Ensuring Value for Money
4
We apply PPA 2006 and PPR 2008
Applicability
Procurement by using Public Fund;
Any Government, semi-government or any statutory body
established under any law;
Using public funds by a company under the company Act-
1994;
Under a loans, credit or grant agreement or any other
agreement between the Government and any
Development Partner , Foreign country or organization;
Provisions of the Agreement shall prevail
provided that if there is anything to the contrary in
any such agreement entered into, the provision of
that agreement shall prevail
5
Forms of Procurement
Procurement Forms
Related Services
Goods
linked to the supply of Goods
Physical Services
Works with measurable outputs
Intellectual & Professional
Consulting Services
advisory, design, know-how
Non-Consulting Catering, Event Management,
Services Outsourcing, Hiring vehicle
Public Procurement
Public Methods
Procurement
Open
One stage two envelope
Limited
Two Stage
Request for quotation
Direct
PublicPublic
Procurement
Procurement
Method CCEA
HOPE
Direct
Direct Contracting ( Sec 32 an 68 of PPA 2006 )
Variation/Additional Delivery/Extra work
order
Public Procurement
Public Cycle
Procurement
Steps
1. Need Assessment/Identification
2. Procurement Plan ( Total/Annual)
3. Specification/BOQ/TOR
4. Official estimated cost ( Three members
committee)
5. Document preparation ( STD Mandatory)
6. Advertisement
TEC
Formation
Public Procurement
Public Procurement
Steps
7. Submission ( Primary place/Multiple Place)
8. Opening (Within one hour of sub. deadline)
9. Evaluation ( Committee one or more)
10. Approval ( Delegation of Financial Power)
11. Notification of Award (Within validity of Tender)
12. Contract Signing
Public Procurement Cycle
Steps
13. Contract Management;
14. Making Payment;
15. Managing Warranty /Defect liability period;
16. Contract Closing;
Public Procurement Cycle
Steps : Goods and Works/For all Methods
1. Need Assessment/Identification
2. Procurement Plan ( Total/Annual)
3. Specification/BOQ/TOR
4. Official estimated cost ( Three members
committee)
5. Document preparation ( STD Mandatory)
6. Advertisement
TEC
Formation
Procurement Need
Steps-1
Identification of requirement
User`s need/stake holders consultation
Estimated cost/Budget/GOB( Dev/non-Dev, DP),Value,
Market ( Availability /quality/competition)
Feasibility study
Public Procurement Plan
Aim at attracting maximum competition for the benefits of the PE
& mandatory for all PE
Package/Lot/Item
Details of procurement object
Official
Method
Estimated
Source of Fund Cost
Estimated Cost
Approval Authority
Invitation/Signing Contract/Completion Contract
Cost and Price ?
Public Procurement Plan
Relates to Contract Strategy
PE takes into account the following when determining the method of Procurement
& consolidating of Goods packages
To be considered – Goods
Availability
Estimated
Quality
cost
Others Price levels
GOODS
Type Capacity
Risks Competition
Urgency
Speed up the process, reduce the error and implement the project efficiently
PE considers the following, in the case of determining the method of
Procurement for Works
To be considered – Works
Prevalent
conditions
Estimated
Capacity
cost
WORKS Expected
Others
competition
Completion Geographic
date location
Speed up the process, reduce the error and implement the project efficiently
Public Procurement
Procurement Plan
(Works)
Procurement Plan
Similar for Goods and
Services
Public Procurement Cycle
Public Procurement
Steps
1. Need Assessment/Identification
2. Procurement Plan ( Total/Annual)
3. Specification/BOQ/TOR
4. Official estimated cost ( Three members
committee)
5. Document preparation ( STD Mandatory)
6. Advertisement
TEC
Formation
Preparation of Specification ( Goods)
To provide clear unambiguous and standard descriptions
To enable evaluation against defined criteria
To promote wider competition
liaison between User, Expert, PE and the Market .
• Information to decide cost
• Environmental aspect
• Permit evaluation
• Social aspect
• Acceptance requirement
• Production method
• Essential features
• Design
• Opportunity to alternate technology
• Physical property
• Legal requirement
• Public acceptability
• Functional aspect
• Public image
• Performance aspect Technical aspect
• Political implication
• Standard
Preparation of BOQ ( Works)
to provide information on the quantities of Works to be performed to enable Tenders
to be prepared efficiently and accurately;
to provide a priced BoQ for use in the periodic valuation of Works executed when a
Contract has been entered into;
Elements of BOQ
PREAMBLE
General specification
SUMMARY GENERAL
Item of Work
Method of Measurement BoQ
Day works
DAY WORK
Provisional sum WORKS ITEMS
PROV.
SUMS
Preparation of BOQ ( Works)
BoQ Grand Summary
Name of Works:
_________________________________________________________________________________________________________________________________________
IFT No.___________________________ Package No._________________________Lot No.______________________
Contract Name ________________________________________________Contract No__________________________
General Summary Ref to page Amount
1 100 General Items
2 200 Preliminary Items
3 300 Main Items
4 400 Other Items
5 500 Misc. Items
6 Dayworks
Subtotal of (1-6):
7 Provisional Sums [GCC Sub Clause 80]
(i) Provisional Sums for Nominated Subcontractor(s)
(ii) Provisional Sums for meeting other expenditures
Subtotal of (7) :
TOTAL CONTRACT PRICE FOR THE WORKS (1-7)
Public Procurement Cycle
Steps
1. Need Assessment/Identification
2. Procurement Plan ( Total/Annual)
3. Specification/BOQ/TOR
4. Official estimated cost ( Three members
committee)
5. Document preparation ( STD Mandatory)
6. Advertisement
Official Cost Estimate
Step 4
To be prepared after development of
Specification/BOQ;
• By forming a 3 member committee;
• Representative from own and representative from other procuring
entity;
• Consider other applicable matters including the transportation
cost, overhead, profit, risk, geographical location, complexity,
backwardness, distance from district head quarter or procuring
station, VAT & AIT where applicable (Rule 16(5a)
• Delivery place, incoterm, payment process, nature of fund ,
Delivery time, contract nature (other matters).
Public Procurement Cycle
Steps
1. Need Assessment/Identification
2. Procurement Plan ( Total/Annual)
3. Specification/BOQ/TOR
4. Official estimated cost ( Three members
committee)
5. Document preparation ( STD Mandatory)
6. Advertisement
Standard Tender Documents
Standard Tender Document (STD)
36 STDs/SPDs
Standard Format ( TS/PS etc)
Tender submission sheet/Information sheet
Instruction for preparation of Tender(ITT/TDS)
Conditions of contract ( GCC/PCC)
Tender Forms
Contract format
Standard Tender Documents
Instruction for preparation of
Tender(ITT/TDS)
Eligibility
Qualification
Tender preparation
Tender submission/opening/evaluation
Contract award
Right to complain
Standard Tender Documents
Conditions of contract ( GCC/PCC)
Time
Cost
Quality
Extension/Variation/Additional delivery
Termination
Price adjustment
Payments/LD/DP
Settlement of Dispute
Opening Committee
1 - member from the TEC / PEC and
2- member from concern
PE and other agency
CHAIRPERSON
MEMBER MEMBER-SECRETARY
Evaluation Committee
TEC : Formation prior to advertisement
5 Members
Approved by Max 7
AA Two external
TEC
Formation prior
to Adv.
Must before
submission 2
Members
External
Public Procurement Cycle
Steps
1. Need Assessment/Identification
2. Procurement Plan ( Total/Annual)
3. Specification/BOQ/TOR
4. Official estimated cost ( Three members
committee)
5. Document preparation ( STD Mandatory)
6. Advertisement
Public Procurement Publicity
Choosing National Level Newspapers of wide daily
circulation commonly known and ubiquitously accepted;
carefully applying sound judgment
ONE ENGLISH ONE BANGLA
LANGUAGE LANGUAGE
PublicPublic
procurement steps
Procurement
Steps
7. Submission ( Primary place/Multiple Place)
8. Opening (Within one hour of sub. deadline)
9. Evaluation ( Committee one or more)
10. Approval ( Delegation of Financial Power)
11. Notification of Award (Within validity of Tender)
12. Contract Signing
Public Procurement Publicity
Tender Submission Step 7
Tenderer submit the Tender within the dead line in specified
place;
Tenders shall be delivered by hand or by mail,
including courier services;
On the basis of the Tender Document issued by the PE;
PE provides receipt , on request;
PE may, at its discretion on justifiably acceptable grounds,
extend the deadline for submission of Tender
PublicPublic
procurement steps
Procurement
Steps
7. Submission ( Primary place/Multiple Place)
8. Opening (Within one hour of sub. deadline)
9. Evaluation ( Committee one or more)
10. Approval ( Delegation of Financial Power)
11. Notification of Award (Within validity of Tender)
12. Contract Signing
Public Procurement Publicity
Tender Opening Step 8
Opening following steps of Schedule IV D of PPR, & ITT- 42 of TDs
Opened immediately after the deadline in the primary place but not later
than 1 hour
No delayed opening on the plea of absence of Tenderers
Representative shall be duly authorized
• Tender Price
• Withdrawal
• Modification
• Substitution TOC INITIAL ALL
• Discount TOC Declare the PAGES OF THE
• Original information and TENDER
• Tender Price prepare opening &
• Tender Security Type sheet Hand over to PE
• TS Amount
• Official estimated cost
PublicPublic
procurement steps
Procurement
Steps
7. Submission ( Primary place/Multiple Place)
8. Opening (Within one hour of sub. deadline)
9. Evaluation ( Committee one or more)
10. Approval ( Delegation of Financial Power)
11. Notification of Award (Within validity of Tender)
12. Contract Signing
Public Procurement Publicity
Tender Evaluation Step 9
Preliminary Examination
Technical Examination & Responsiveness
Financial Evaluation & Price Comparison
Post-qualification
Public Procurement Publicity
Tender Evaluation Step 9
Preliminary Examination
• Tenderers Eligibility
• Completeness (Requirement/Document/Format)
• Tender Security ( Format/amount/Validity/Reference)
• Tender Validity ( Required by PE)
• Notice for W,S,M
Technical Evaluation
Verification and examination of documentary evidence that the Tenderer’s qualifications
conform to the Tender Documents
Adequacy
Authenticity
Acceptability
And Technical Compliance TSC
Tender Responsiveness
Without Material Deviation
affects in any substantial way the scope, quality
or performance
limits in any substantial way, the PE’s rights or the
Tenderer’s obligations
whose rectification would unfairly affect the
competitive position of other Tenderers
presenting responsive tenders
Financial Evaluation
Financial Evaluation
1. Conform to requirements;
2. Check of tax, VAT etc.
3. Correction of A. Errors;
4. Price modifications, discounts;
5. Factors affecting economic value ( If apply)
6. Price Comparison and check Official
estimated price weather comparable;
Post Qualification
Post Qualification
For Lowest Evaluated Tender
Based on the qualification criteria specified in the
TD the TEC shall verify to its satisfaction that the
successful tenderer is qualified to perform the
contract satisfactorily by
- Contacting references
- Obtain most up-to-date information
- Visit premises, if needed
TEC make recommendation and submit to approval authority
Public procurement steps
Steps
7. Submission ( Primary place/Multiple Place)
8. Opening (Within one hour of sub. deadline)
9. Evaluation ( Committee one or more)
10.Approval ( Delegation of Financial Power)
11.Notification of Award (Within validity of
Tender)
12.Contract Signing
Public Procurement
Approval Process
Three Distinct Streams of Approval
Ministry/Division
Attached Office COMPANIES
Divisional/District/Upazilla Office
Projects
CORPORATION
AUTONOMOUS BODY
Delegation
SEMI-AUTONOMOUS
as decided
BODY by BOG
Determined by DoFP/Sub-Delegatin ( FD)
Public Procurement
AA decides on the recommendations of EC
(a) approve the recommendations;
or
(b) Seek clarification from TEC
Explaining the reason –
(c) reject the recommendations for a re-evaluation;
or
(d) reject the recommendations with instructions
to reprocess/re-tender
47
Public Procurement
ApprovalAuthority
Approving Process (AA)
PE
PD/Officers below HOPE
SECRETARY
When HOPE CCGP/
MINISTER
TEC/ HPM
PEC
HOPE.
PublicPublic
procurement steps
Procurement
Steps
7. Submission ( Primary place/Multiple Place)
8. Opening (Within one hour of sub. deadline)
9. Evaluation ( Committee one or more)
10.Approval ( Delegation of Financial Power)
11.Notification of Award (Within validity of
Tender)
12.Contract Signing
Notification of Award ( Step-11)
NOA Contractor/Supplier
NOA before the expiry date of the
Accepted in Writing
Within 7 Working
From the date of
validity
Finalized
Issuance NOA
PE
Days
Within 7 Working days of receipt of
the approval of the award by AO
Public Procurement Steps
Contract Signing ( Step 12)
Submission of PS ( 10% for goods) within 14 days from
the acceptance of NOA
PS Validity 28 days after completion ( including the
date of warranty)
Date specified in NOA
Contract signing within 28 days from the issue of NOA
Public Procurement
Contract
The following documents forming the contract shall be interpreted in the
following order of priority
1. The signed Contract Agreement;
2. The Notification of Award;
3. The Tender and the appendix to Tender;
4. Particular Conditions of Contract;
5. General Conditions of Contract
6. Technical specifications;
7. General specifications;
8. Drawings;
9. Price Schedule and schedule of requirements for Goods;
10. Other Documents including correspondence
[order of precedence]
52
Public Procurement
Public Procurement
Steps
13. Contract Management;
14. Making Payment;
15. Managing Warranty /Defect liability period;
16. Contract Closing;
Public Procurement
Public Procurement
Steps ( 13,14,15,16)
• Performance of all tasks;
• Under the Contract;
• Until successfully completed,
• Accepted or terminated and,
• Payment made,
• Disputes resolved
Blocks of contract performance
Preliminary Certification of payment
(administrative, technical and financial) Implementation Supervision Progress Payment
NOA Instructions
PS Sanctions and Approvals
Concurrence of DPs Retention Money
Contract signing
Program of Works Resetting PS
Site Possession
Inspection and Testing Application of Discounts
Advance Periodic Measurements Application of LD
Commencement Date
As-built Drawings
Start Date Variations or Extra Works
Contract Amendment Refund of PS
Submission of Program
Progress Reviews Refund of RM
ICD
Compensation Events Final Account
Mobilization
Force Majeure &
Execution Time Extension Others
Other public utilities Termination
Others Claims
Disputes Settlements
Taking-over-Certificate
Completion Certificate
Defects Correction Schedule
Defects Correction Certificate
Public Procurement
Key activities ( Goods)
Scope of Supply
Transportation
Delivery & documents
Acceptance
Inspection & Test
Dispute settlement
Warranty
