2 Tender Evaluation Section IntroductionTender Evaluation SectionWelcomeIntroductions & expectations from the workshop
3 Definition of Procurement What is Procurement?‘Acquisition by purchase, rental, lease, hire purchase, license, franchise or any other contractual means, of any types of goods, works or services or any combination of goods, works or services’Not process or a procedure but management
4 Public Sector Procurement What is special about Public Procurement?
5 Public Sector Procurement What is special about Public Procurement?- Source of funds is the principal difference - government funds are often tax revenues, donor funds- Therefore there is a need to be accountable to Parliament, civil society and donorsUniformity of systems and procedures across the public sectorAccountable and transparentPublic procurement is the way public money is spent – budgets get translated into services largely through the procurement systemFirst principles of procurementEfficiency & effectivenessProfessionalismCompetitivenessAccountabilityValue for moneyFairnessTransparencyEthical approachaccountability
7 Legal Framework for Public Procurement Law on Public Finances – Law No. 3/2006covers public expenditurelimited detail on procurementmay need small revision to accommodate procurement regulationsGovernment Financial RegulationsChapter 8 (and certain other clauses) on procurement to be repealednew chapter drafted ( chapter 10)remaining regulations will be revised separatelyProcurement is currently governed by Chapter 8 of the Financial Regulations. These are outdated and have a number of weaknesses:They mostly cover only the procurement of works, with goods and services not adequately coveredAfter several revisions, there are some inconsistencies with other chapters of the Financial RegulationsThey are not sufficiently detailed and do not meet international standardsThey don’t include effective mechanisms for monitoring procurement or for complaints by tenderersThe division of responsibilities between TES and the ministries is not clearThey don’t include any arrangements for central purchasing of commonly used items to enable the government to obtain maximum value for money.The Government is therefore preparing new procurement regulations as the first step in strengthening the public procurement system.ObjectivesThe new regulations have the objectives ofensuring transparency and accountability in public procurement;achieving economy, efficiency and maximum competition to ensure value for money in the use of public moneys; andpromoting greater private sector participation, through fair and non-discriminatory treatment of tenderers.Standard bidding documents have also been prepared in line with the regulations.Key ContentsThe public procurement regulations include the following:They create a new Procurement Policy Section in MOFT to oversee procurementThey clarify responsibilities between different parts of government and give clear responsibilities for approving procurement activitiesThey bring uniformity to procurement practices across governmentThey introduce a complaints mechanism which allows tenderers to appeal against breaches of procurement rules by the governmentThey allow government to suspend or blacklist suppliers who consistently default on contractsThey introduce codes of conduct for both the government and the private sector.
8 What do the regulations apply to? All procurement by government agencies using public moneysPublic enterprises NOT coveredExceptions for:defence or national securitygrants/credits where donor rules applyprivate financing and concessions
9 Objectives of Public Procurement Transparency and accountabilityEconomy, efficiency and competition = value for moneyPromote private sector participation through fair and non-discriminatory treatment of tenderers
10 Who authorises procurement? Approvals authority can be:Accountable officer – low value contractsAgency Tender Committees – where authorised by Financial Controller up to specified level of authorityNational Tender Board – unlimited authority
11 Levels of AuthorityAccountable Officer: value of procurement does not exceed MRf 25,000 ( USD 1,621)Agency Tender Committee: value of procurement does not exceed MRf 1,500,000 (USD 97,276)National Tender Board: all other procurement
12 Role of Approvals Authority Ensure procurement is compliant with the RegulationsAuthorise certain stages of procurement process:Invitation documentsEvaluation reportsContract amendmentsAlso authorise use of single source/emergency procurementInvitation documents, advertisements and shortlists for tendering or request for proposals prior to their issueEvaluation reports prior to any further tender opening, negotiations or letter of acceptanceContract amendments or terminations prior to their issueAlso single source selection except for procurement under MRf 1000
13 National Tender Board Previously known as Tender Evaluation Board Run by Ministry of Finance and TreasuryChairperson and seven members – appointed by PresidentAt least 2 members from private sector – not permitted to tender while serving on BoardSecretary – Head of Tender Evaluation SectionTo ensure that all procurement submitted for prior authorisation is in accordance with RegulationsNTB is highest approvals authority for Govt of Maldives – run and administered by MOFTUnlimited authority but has no authority over procurement that
14 Agency Tender Committees May be established where procurement workload and capacity are highSubject to government policy on centralisation/ decentralisationMinister to authorise establishmentNot in all government agencies – levels may differTo ensure that all procurement submitted for prior authorisation is in accordance with Regulations
15 Composition of Agency Tender Committees Chairperson and 2-6 membersAppointed by Accountable officerSelected for range of technical skills and knowledgeGovernment agencies must establish Procurement Unit to support Tender CommitteeHead acts as Secretary
16 Who conducts procurement? Lead government agencies – specialised and common use itemsGovernment agencies themselves – up to level of authorityTender Evaluation Section– all other itemsRequisitioning agency will always:Plan procurementAuthorise fundingProvide technical inputs/assist with evaluationLead agency – conducts procurement on behalf of another government agency or agencies
17 Mode of ProcurementMost of the government agencies uses SAP-Materials Management Module (MM) to procure their goods and servicesMM has been implemented to more 70% of the government agencies in term of the spending (budget)Standardize Purchase order throughout the implemented agenciesCentrally Managed by the Ministry of Finance and Treasury
18 Monitoring and Observation of the Public procurement Public Procurement Section is not yet establishedCurrently there are no mechanism to monitor public procurement in all government agenciesBut through SAP- Materials Management Module most of the agencies based in Male’, will be monitored though this systemIf the government agencies do not follow the rules and regulations of the public procurement, they will be reported to Anti-Corruption Commission directly
19 New initiative for Modernizing the Public Procurement in Maldives (Continued…) The PFM Strengthening Project (2014~2019) contains specific component for Improving the control environment where the objective is to strengthen the country procurement management system by: Review and updating of the Financial Regulations including the Procurement Chapters;standardization and establishing procurement benchmarks based on international good practice;setting up of the procurement policy section;establishment of complaints handing system;strengthening the tender evaluation section within the MOFT-based National Tender Board;
20 New initiative for Modernizing the Public Procurement in Maldives developing procurement manuals and standard operating procedures for harmonizing the procurement practices across the country;reviewing and updating the standard bidding documents;establishment of institutionalized and sustainable procurement training mechanism via the Civil Service Commission;Professionalize and introduction of procurement cadre in the civil services.
21 Role of the Auditor general’s office AGO reports directly to parliament and public accounts committeeUnder the public finance law, each accountable office has to be audited every year and audit report has to be sent to the parliament on or before 31st May of the following yearCopy of the same report is sent to the President, Minister of Finance and Treasury and audited entityIn the year 2013, MVR 1.4 billion worth of procurement of goods and services has been made against the prescribed guidelines in the public finance regulation