1. Public Procurement and Asset Disposal System
24th November 2010
Tshepo Sayed, Economist
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

2. 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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

3. Establishment PPADB was established through an Act of Parliament:
PPADB CAP 42:08
Started operation 2nd July 2002.
Previously procurement was regulated through Supplies Regulation
Public procurement and asset disposal reforms began in February 1998.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

4. 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,.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

5. PPADB Structure
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

6. 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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

7. 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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

8. 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.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

9. The bidding is conducted on the basis of bidding packages.
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..
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

10. The bidding process includes: bid preparation.
organisation of bidding,
bid evaluation,
adjudication and award,
announcement of bid winners,
contract negotiation,
finalization and signing
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

11. 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.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

12. 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);
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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).
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

14. Focus on providing value for money
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.” -
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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 15th August 2011
A transition period of one year given, after which registration will be an eligibility requirement
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

21. Code of conduct promotes: Professionalism Guidance on responsibilities
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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

23. 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.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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.
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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)
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

27. EXPENDITURE OF MINISTRIES
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

28. Board Award decisions per Ministry( 2009/2010)
Awards(P million) OP
26,834,481.29
MOH
257,743,641.53
MIST
7,608,757.75
MTC
250,208,634.04
MFDP
18,904,898.19
MOE
11,275,430.58
MOA
44,760,786.32
MLH
3,969,639.26
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

29. Cont MMEWR 394,252,172.89 MLHA 20,271,539.03 MEWT 16,178,249.92 MYSC
116,699.11
MDJS
18,284,300.21
MLG
140,902,605.11
TOTAL
1,172,879,645.84
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

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
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018

31. Gaborone West Industrial Site
Thank you
Address queries to:
Executive Chairman
P/Bag 0058 Gaborone
Plot 8913 Maakgadigau Way
Gaborone West Industrial Site
Tel:
Fax:
4/12/2017
To be the centre of excellence for public procurement and asset disposal by 2018