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PPRA Annual Report, 2008-12

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PPRA Annual Report, 2008-12 PUBLIC PROCUREMENT REGULATORY AUTHORITY Annual Report 2008-12 Vision Statement Aspiring for competition, fairness and transparency to build confidence of contractors, suppliers and public on the procurement system. Mission Statement To regulate procurement of goods, services and works in the public sector to monitor overall performance of procuring agencies by providing level playing field to all National and International suppliers, contractors and consultants in accordance with the policies of Federal Government leading to improvement in governance, transparency, accountability and quality of public procurement. CONTENTS Page Nos. 1. Chairman’s Message 01- 02 2. Preface 03-05 3. The Authority i. Composition 07 ii. Powers & Functions 08-09 iii. Organizational Structure 10 4. Procurement Sector Outlook 12 5. Role of PPRA as Regulator 14-16 6. Enforcement of Regulatory Framework – Regulatory Instruments i. Public Procurement Rules, 2004 18-19 ii. Public Procurement Regulations 20 iii. Monitoring of Tenders 20 iv. Monthly Gazette 21 v. Pakistan Procurement Code 21 vi. Capacity Building 22-25 7. Regulatory Activities: - i. Tenders Uploading 27-29 ii. Rules Interpretations 30-32 iii. Complaint Handling Mechanism 32-33 iv. Procurement Manuals of Procuring Agencies 33-38 v. Online Query System 39 vi. Grant of Exemptions 39 8. Miscellaneous Activities i. Coordination with Federal Government 41 ii. International Coordination 42-45 iii. Human Resource 46 iv. PPRA’s Office Building 47 v. PPRA’s Website – Information Technology 48-49 vi. Revenue Generation- A step towards 50 self reliance vii. e-procurement 51-57 9. Annexures 59 10. Acronyms Used in the Text 135 1. Chairman’s Message The past two decades have seen unprecedented transformation in the concepts and practices that have for a long time defined that public sector norm. In essence, this has been a paradigmatic shift from government to governance. While the change has been more pronounced in the Western developed world, many of the new public management reforms have also been quickly adopted in developing nations. Pakistan is no exception. Under the new norm, private sector organizations, non- government and not-for-profit agencies, and citizens’ bodies are viewed as partners in public services delivery structures. This obviously brings the effectiveness of public procurement systems centre stage in any evaluation of public sector performance. While financial bottom line tends to work as a powerful incentive for private sector organizations to ensure efficient resource utilization and procedural efficacy, public sector incentive structures are indirect and, therefore, need to be consciously devised and enforced to achieve intended outcomes. These incentive structures must frequently be constructed upon accountability for the judicious use of public resources; probity in decision-making; and due diligence, fairness, and transparency in procedures. Such incentive structures are al the more important in the public procurement of goods and services – which is one of the central postulates of good governance. And with the correlation between good governance and socioeconomic development becoming increasingly clear, it is now more critical than ever for governments to ensure probity, propriety, transparency, and accountability in public procurement systems. Indeed, this was the core considerations behind the creation of the Public Procurement Regulatory Authority. The rules and procedures framed by the Authority are designed to optimize quality without compromising cost-effectiveness in government procurement as well as to eradicate malpractices and opaque decision- making. The report for the years 2008-12, which you are about to read, is a resume of 1 the efforts made by the Authority over the past four years towards quality assurance, open competition, and transparency in public procurement. I would like to take this opportunity to express my appreciation of the earnest commitment exhibited by the management and staff of the Authority towards the robust implementation of procurement rules and procedures across all government sectors. Equally commendable are the arrangements made for the comprehensive training of public officials in the new regulatory framework through the National Institute of Procurement. Abdul Khaliq Finance Secretary, Government of Pakistan/ Chairman, Public Procurement Regulatory Authority Board, 2 2. Preface The procurement sector in Pakistan has gone through noticeable improvement in terms of awareness, transparency and efficiency during the last four years. During this period many new initiatives were taken. As a result PPRA has developed as an efficient, effective and pro-active regulatory authority. In a short span of time this benign organization has been transformed into a vibrant regulating entity in public sector. Some of these initiatives are explained in the succeeding paragraphs. The prime function of PPRA of monitoring procurement has been strengthened by providing prompt responses to the queries through PPRA website and official correspondence. A team of IT professionals were engaged to receive and collect tenders and to upload them on its website on daily basis. The violations of Public Procurement Rules, 2004 are communicated to the concerned departments on urgent basis. These violations are also being uploaded on the PPRA web portal against the relevant tender of the procuring agency. This has made procuring agencies more careful in preparation of tender documents, Requests for Proposal and Expression of Interests. These violations are rectified by issuing timely corrigendum. Strict monitoring and prompt indication of violations resulted insignificant decrease in the rate of violation from 26.35 % in year 2008-09 to 10.40% in year 2011-12. The World Bank’s Public Capacity Building Project of PPRA was successfully completed in year, 2009.The entire setup along with manpower was merged into PPRA’s main strength. To continue the task of capacity building of government functionaries an in-house arrangement was made by establishing the National Institute of Procurement (NIP). This institute has been equipped with modern facilities and can accommodate 20 - 25 participants at a time. During the period under review 2334 public / private officials were trained at NIP. 3 To provide update about the activities of public procurement sector, a monthly gazette was published for the first time in July, 2009. The regular issuance of monthly gazette is instrumental in updating the stakeholders about the PPRA activities and performance relating to procurements. A comprehensive feedback and impact evaluation survey regarding Authority’s functions and performance was conducted without incurring any cost to the national exchequer. Valuable comments and suggestions were received from various stakeholders. The effectiveness of PPRA’s role was widely appreciated by the public and private sectors and international organizations. As a first step towards financial autonomy the PPRA Board approved a nominal charge of Rs.1, 000/- for uploading of tenders on its website. This was made effective from 1stDecember, 2009. The management of procuring agencies is constantly reminded to upload annual procurement plans, evaluation reports, and contracts awards of over Rs.50 million. The procuring agencies were advised to form grievance redressal committees to bring efficiency and transparency. The procuring agencies responded positively and most of them formed grievance redressal committees which are displayed on PPRA website. Similarly annual planning and evaluation reports sent by various government entities are being uploaded on our website. To facilitate the public sector stakeholders, “Pakistan Procurement Code” was published. By the end of June, 2012, 3rdedition of this code has been printed. Every edition is updated by including addition or amendment in the rules, regulations and policy guidelines issued by the Authority. This document contains the PPRA Ordinance, 2002, PP Rules, 2004, Procurement Regulations 2008, Procurement Consultancy Services Regulations 2010, Policy Guidelines and Frequently Asked Questions for the reference and knowledge of the readers. With the help of National Language Authority the code has been translated into Urdu. The Urdu version of “Pakistan Procurement Code’s is available for the readers on the PPRA’s website. In addition many other related documents are available on the Authority’s website which can be downloaded by the general public at any time. 4 The Authority continues to offer capacity building short courses for creating awareness of Public Procurement Rules, 2004. The Authority has also provided technical assistance to major procuring agencies and helped in development of procurement manuals of ten (10) major public sector organizations. To meet the modern requirements, PPRA is working for bringing appropriate amendments in the public procurement rules, regulations and procedures and development of Standard Bidding Documents. This report is being presented for release to the Public in terms of Section (17) of PPRA Ordinance, 2002 and it provides an overview of the activities for the period1st July, 2008 to 30th June, 2012. ( Nazrat Bashir ) Managing Director, Dated: 30-03-2013 5 THE AUTHORITY 6 3. The Authority i) Composition In terms of Section (6) of Public Procurement Regulatory Authority (PPRA) Ordinance, 2002 (No.XXII of 2002) [Annex-I], the Management of PPRA is vested in its Board, which is the apex decision making body
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