1. Public Procurement Reforms
By. Naeem Abbas
PPRA

2. 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

3. Objectives of Procurement Reforms
Economy (Value for money)
Efficiency
Transparency
Accountability
Competitiveness
Fairness

4. Past Regulatory Environment
Procurement under GFR
Procurements by Corporate Sector
Procurements by Statutory Bodies
Classified Procurements

5. Present Regulatory Framework
Enabling Legislation
PPRA Ordinance 2002
Subsidiary Legislation
Public Procurement Rules, 2004
Public Procurement Regulations

6. Composition of PPRA Board
Secretary, Finance Division: Chairman
Secretary, MoI &P: Member
Secretary, D P Division: Member
Secretary, MoW & P: Member
Secretary, Mo H & W: Member
Secretary, M o C: Member
Syed Nizam Shah: Private Member
Mr. Javed Hussain: Private Member
Mr. Munawar Hameed: Private Member
Managing Director (PPRA): Member

7. 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;

8. 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;

9. Functions (Contd.)
Provide and coordinate assistance to procuring agencies for developing their institutional framework;
Call any functionary of procuring agencies to provide assistance.

10. Steps Involved in Redesigning New Procedures
Study of Existing Procedures
Identification of Redundant & Non Transparent Procedures
Redesigning New Procedures
Emergency Procedures

11. Procurement Cycle Contract Administration
Planning/Designing specifications
Payments
Pre-qualification
Grievance Redressal
Solicitation of Bids
Contract Award
Bids opening and Evaluation

12. 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

13. 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

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

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

16. 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.

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

18. Implementation Information Dissemination Advisory Services
Complaint Redressal
Preliminary Dispute Resolution Mechanism

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

20. Grievance Redressal Committees within procuring entity
2nd tier grievance redressal
Mohtasib’s office
Judicial Remedy

21. Payment Regulations
On account payments
Closing of Contracts

22. Closing of Contracts Resolution of Contractor’s Claims
Completion of Project Reports
Historical Files to Retain: Requirements of Auditor General
Post Completion Evaluation

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

24. 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 PSE’s Delegation of Powers, Declaration of Emergency and Emergent Procurement Procedures, Payment Procedures etc.

25. Thank You