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To be the centre of excellence for public procurement and asset disposal by 2018 1 Public Procurement and Asset Disposal System 24 th November 2010 Tshepo.

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Presentation on theme: "To be the centre of excellence for public procurement and asset disposal by 2018 1 Public Procurement and Asset Disposal System 24 th November 2010 Tshepo."— Presentation transcript:

1 To be the centre of excellence for public procurement and asset disposal by Public Procurement and Asset Disposal System 24 th November 2010 Tshepo Sayed, Economist 4/25/2015

2 To be the centre of excellence for public procurement and asset disposal by Presentation outline Establishment Factors leading to system review PPADB Structure Scope of the PPADB Functions and principles of the PPADB Some key features of the system Objectives, Basis and Process of bidding implementation Preparation for tender Organization of the bidding process for procurement Reservation Policies Types of bidding and Submission methods Bid evaluation Adjudication and award 4/25/2015

3 To be the centre of excellence for public procurement and asset disposal by Establishment PPADB was established through an Act of Parliament: PPADB CAP 42:08 Started operation 2 nd July Previously procurement was regulated through Supplies Regulation Public procurement and asset disposal reforms began in February /25/2015

4 To be the centre of excellence for public procurement and asset disposal by Factors leading to system review Rapid expansion in volume and complexity of procurements; Shift in scope away from simple supplies based; Conflicting bidding practices Complex contract documentation and specification standards created by externally funded projects; Lack of citizen empowerment in public procurement; The need to promote transparency, public accountability,. 4/25/2015

5 To be the centre of excellence for public procurement and asset disposal by PPADB Structure Executive Chairman CSM HR & Admin Finance OBS Legal Services Registry Dir. Supplies DM Supplies Specialists Dir. Works DM Works Specialists Dir. Services DM Services Specialists IT 4/25/2015

6 To be the centre of excellence for public procurement and asset disposal by Scope of the PPADB All entities of central government Procurement of all works, services, supplies or any combination thereof; Disposal of serviceable and unserviceable: Does not apply disposal of assets under the scope of PEEPA. E.g. BTC, Air Botswana, NDB, GEMVAS 4/25/2015

7 To be the centre of excellence for public procurement and asset disposal by Functions and principles of the PPADB Standardisation of procurement items. Aggregation of P&D activities Competition between contractors Value for money Fair and equitable treatment of all contractors Accountability and transparency Integrity, fairness and public confidence Anti-corruption in P&D 4/25/2015

8 To be the centre of excellence for public procurement and asset disposal by Some key features of the system Contractor registration Standardised bidding packages Independent complaints review committee and bid protest mechanism; Devolution of PP&AD Special PAD committee Enforcement of reservation and preference schemes Code of ethics for registered contractors. 4/25/2015

9 To be the centre of excellence for public procurement and asset disposal by Objectives of Bidding The objective of the bidding is to ensuring the economic efficiency of projects and achieving value for money through competition, fairness and transparency in the process of bidding and selection of suppliers (PPADB Act 2001). The bidding is conducted on the basis of bidding packages. The bidding package reflects the entire project or part of the project.. 4/25/2015

10 Bidding Process The bidding process includes:  bid preparation.  organisation of bidding,  bid evaluation,  adjudication and award,  announcement of bid winners,  contract negotiation,  finalization and signing 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

11 To be the centre of excellence for public procurement and asset disposal by Preparation for tender The project-bidding plan is worked out by the PE. A project bidding plan includes the following: The division of the project into different bidding packages; The estimated costs of the bidding packages and financial sources; Type of tender and the procurement method to be applied to each bidding package; Type of contract for each bidding package; The contract performance duration. 4/25/2015

12 To be the centre of excellence for public procurement and asset disposal by Organization of the bidding process for procurement Identifying the need and selection of appropriate tender method (PE); Compiling bid documents with specifications (PE); Vetting bid packages (PPADB) Publishing the tender invitation (PPADB and/or PE); Receiving and managing bids (PPADB or PE); Opening bids (PPADB or PE); Appointment of tender evaluating team (PE); 4/25/2015

13 Organization of the bidding process for procurement ( Cont) Evaluating and rating bidders (PE); Submitting recommendations for award (PE); Adjudication and award (PPADB); Bidder debriefing (PE); Contract Implementation (PE). 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

14 To be the centre of excellence for public procurement and asset disposal by Reservation Policies Focus on providing value for money Exploit provisions in the Act on Reserved & Preferential Treatment. -Part VIII of the PPAD Act CAP 42:08 Section 66- “Pursuant to its economic and social objectives, the Government may from time to time introduce reserved and preferential procurement and asset disposal schemes, which shall be consistent with its external obligations and its stable, market oriented macro economic framework.” - 4/25/2015

15 -(a) be targeted and time bound -(b) be phased in and out -(c) be non discriminatory in respect of the targeted group. -(d) be based on competition among eligible contractors. -(e) entail their calculation of cost versus the cost of unrestricted competition. -(f) have clear, quantifiable objectives to be achieved. -(g) entail benchmarks to assess progress 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

16 Who May participate Bidders licensed / incorporated under relevant Botswana statutes and Registered with PPADB Foreign / international bidders may participate in open domestic bidding subject to registration requirements Open international bidding is however open to all bidders. 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

17 Contractor Registration( Legislative Requirement Section 116 &49 ) PPADB is mandated to maintain a current register of contractors in works, supplies and services PPADB shall be responsible for all aspects of the management of contractor registration system including decisions on:’#  Application for registration  Reclassification  Discipline of contractors 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

18 Legislative Requirement Section 116 &49 The Board shall be cognizant at all times of: Work load and Performance record of contractors Non- registered contractors shall be disqualified from tendering except where it is stated that the registration is not an eligibility requirement to participate. 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

19 Registration Is mandatory for contractors domiciled in Botswana intending to bid for Government procurement and asset disposal. Registration for service provides and suppliers commenced in earnest on the 15 th August 2011 A transition period of one year given, after which registration will be an eligibility requirement 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

20 Categorisation and Coding Works contractors (Code 01-99) Service Providers ( Code ) Suppliers ( Code ) Consultants ( Code ) All the above are further classified into sub-codes 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

21 By virtue of regsitration contractors shall be bound to conform with the code of conduct. Code of conduct promotes: Professionalism Guidance on responsibilities Standard of conduct for contractors Contractors may be suspended or delisted the Board for: Non compliance with the code of conduct Defaulting on the execution of contracts 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

22 Enforcing Suspension During the suspension period: Suspended contractors are debarred from registering a newly incorporated entity with PPADB Other contractors will be debarred if they employ defaulting shareholders, directors or senor officers in key operational positions 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

23 To be the centre of excellence for public procurement and asset disposal by Adjudication and award Approve :PE recommendations and award the tender to the recommended bidders Defer its decision and: Return the evaluation report to PE for additional information and /or revision of the evaluation process. Reject the PE recommendations and: Return the evaluation report to PE for re- consideration Appoint an independent evaluation team and, on its sole determination, award the tender to the most compliant bidder; Not award the tender and advise re-tendering. 4/25/2015

24 Dispute Resolution Mechanism The Board is empowered to act upon: Complaints by PE’s and DE’s, contractors, media and or the public in respect of a procurement or disposal activity. The Board also sits to seek to resolve disputes amongst procuring or disposing entities or between such entities and the contractors. Independent Complaints Review Committee (ICRC) has been est. S 95 to; Deal with challenges by contractors Complaints by contractors 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

25 Dispute Resolution Cont’d Appeals against disciplinary measures by the Board. Conflicts between the Board and its employees. Disputes and resolution of conflicts between- Procuring and disposing entities, Such entities and the board or its Committees, Contractors in respect of interpretation of the Act, Issues within the scope of the Act ICRC hears written cases only after following the review procedures of the Board. 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

26 Dispute Resolution Cont’d Matters not subject to the review process; Selection of a method of procurement Choice of an evaluation procedure Rejection of all bids Decision on an unsolicited offer / bid; and Decision of Board on International obligations (Reg 4 iii) 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

27 EXPENDITURE OF MINISTRIES 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

28 Board Award decisions per Ministry( 2009/2010) MINISTRYAwards(P million) OP26,834, MOH257,743, MIST7,608, MTC250,208, MFDP18,904, MOE11,275, MOA44,760, MLH3,969, /25/2015 To be the centre of excellence for public procurement and asset disposal by

29 Cont MMEWR394,252, MLHA20,271, MEWT16,178, MYSC116, MDJS 18,284, MLG 140,902, TOTAL 1,172,879, /25/2015 To be the centre of excellence for public procurement and asset disposal by

30 Conclusion PPADB handles tenders in all areas of works, services and supplies 60% + of Government budget expended through procurement PPADB is committed to uphold the principles enshrined in the PPAD Act and of best practice in the conduct of procurement and disposal 4/25/2015 To be the centre of excellence for public procurement and asset disposal by

31 To be the centre of excellence for public procurement and asset disposal by Thank you Address queries to: Executive Chairman P/Bag 0058 Gaborone Plot 8913 Maakgadigau Way Gaborone West Industrial Site Tel: Fax: /25/2015


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