To be the centre of excellence for public procurement and asset disposal by

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Public Procurement and Asset Disposal System

19th November 2010

Tshepo Sayed, Economist

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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

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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.

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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,.

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PPADB Structure

Executive Chairman

CSMOBS

Dir. Supplies

DM Supplies

Dir. Works

DM WorksDir. Services

DM Services

Legal ServicesFinanceHR & Admin

Specialists

Registry

SpecialistsSpecialists

IT

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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

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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

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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.

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Objectives, Basis and Process of bidding implementation

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..

The bidding process includes: bid preparation. organisation of bidding, bid evaluation, adjudication and award, announcement of bid winners, contract negotiation, finalization and signing.

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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.

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Organization of the bidding process for procurement

Identifying the need and selection of appropriate tender method (PPADB);

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);

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Evaluating and rating bidders (PE); Submitting recommendations for award (PE); Adjudication and award (PPADB); Bidder debriefing (PE); Contract Implementation (PE).

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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.”

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-(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

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Types of bidding

Unrestricted, open or public tender (ODB or OIB): Unrestricted number of participating bidders. . Unrestricted tender is the most preferred form to ensure

competition. Restricted tender:

A number of bidders invited to participate, Usually following pre-qualification:

Only a number of bidders are capable of meeting the requirements of the bidding package;

Sources of capital require the restricted bidding; More advantageous due to specific situation of bidding

package; Common approach in PPP procurement.

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Types of bidding (cont’d)

Informal or quotation bidding: Applicable to procurement valued at under P100 000. At least 5 different bidders are invited.

Appointed or direct bidding: Applicable in special cases:

Natural calamities or national security situations, Change of scope of existing contract, etc. Proprietary terms limit supplies to single source.

Waiver required for the appointment of direct bidders Others may include micro-procurement and emergency

procurement

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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.

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Submission methods

The one envelope bidding: Submit bids in a single package of documents

The two envelope bidding: Submit both technical and financial proposals in separate

envelopes simultaneously, e.g. consultancies The two-phase bidding:

Bidding packages for goods procurement Construction and installation that require pre-qualification due

to technical complexity Projects executed under turn-key and PPP contracts This process shall effected in phases

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This process shall be effected in phases The first phase:

Bidders submit their preliminary for discussion. The second phase:

Short-listed bidders from the first phase to submit their official bids.

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Bid evaluation

Bid evaluated and ranked according to tender requirements. The bid evaluation is conducted according to the following methods:

Least cost based selection: Compliance, technical responsiveness and least cost

Quality and cost based selection: Compliance check, technical evaluation; Financial bids with minimum qualifying mark opened and

evaluated; Highest combined score usually awarded.

Quality Based Selection (two envelope): Technical bid compliance, technical bid responsiveness; Financial bids of best evaluated technical bid opened and

evaluated Negotiations and award.

Fixed budget selection: Compliance check, technical responsiveness; Highest ranked bid within budget is recommended for award.

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Adjudication and award

Approve PE recommendations and award the tender to the recommended

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.

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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

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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.

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Dispute Resolution Cont’d

In hearing the disputes, the ICRC may; Uphold the decision of the Board. Reject the decision of the Board and order the PE

to:-Do or redo an action or proceedingSuspend procurement processCancel the procurement proceeding

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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)

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Board Award decisions per Ministry( 2009/2010)

MINISTRY Awards(P million)MWT 755,685,447.82

MOH 340,673,580.18

MMEWR 756,732,084.55

MOE 197,261,155.93

MFDP 5,439,295.20

MLG 417,269,907.02

MLH 120,000.00

MLHA 82,500,000.63

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Cont

MOA 79,459,304.74

OP 140,086,003.78

MCST 466,982,575.43

MEWT 735,265.98

MYSC 4,031,500.01

TOTAL 3,246,976,121.27

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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

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Thank you

Address queries to:Executive Chairman

P/Bag 0058 GaboronePlot 8913 Maakgadigau Way

Gaborone West Industrial SiteTel: 3906853Fax: 3906822

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