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Improving Procurement and Implementation of Projects
Improving Procurement and Implementation of Projects
IMPLEMENTATION OF PROJECTS
DR. L. M. SHIRIMA
CHIEF EXECUTIVE OFFICER
PPRA
CONTENTS
Preparing for procurement and execution of
projects;
Procurement governance and independence
of functions;
Typical challenges in managing procurement
processes and contracts and solutions;
Concluding remarks
FEASIBILITY STUDY
Lack of or inadequate feasibility study;
Inadequate identification/establishment of actual
project requirements;
Failure to use official/correct statistics;
When done by potential bidder (e.g. intended for
execution of the project:
Potential conflict of interest;
Common in some infrastructure and ICT projects
ESTABLISHING REQUIREMENTS
Failure to involve key stakeholders:
Institutions that would have provided advice:
E.g. ICT projects: compatibility with other systems
already in use by Government or in the country
ACCOUNTING OFFICER
Reports
to AO
TB submits to AO approved
bidder for notification of intention to award
Provisions to
Handle
disagreements
TENDER BOARD
PMU Submit Recommendations
to TB for Approval
User Departments
initiate Requirements, inputs to
specifications and in evaluation
Evaluation
committees
8
ACCOUNTING
OFFICER - R47
SUB- DIVISION
OF A PE
MEMBER
OF STAFF
Shall not delegate:
Establishment and
Appointment of members
of Tender Board;
Establishment of PMU;
Investigation of complaint
by bidders;
Submission of reports of
findings in respect of
complaint to PPRA;
ANOTHER PE
DELEGATED TB
ENTIRE PROCUREMENT
DELEGATED PMU
PARTIAL PROCUREMENT
Obligated to
Submit Progress
reports;
Submit copies of
minutes;
Seek advise from
HQ
Disciplining of staff
implicated of wrongdoings
DELEGATION
PROCUREMENT
AGENT
CONTRACTING OUT
Specifications
SOR or TOR
Evaluation of
Contract
Performance
Managing the
contract
Inviting tenders
INTERFACE
Managing how
the contract is
put in place
Awarding the
contract
Evaluation of
tenders
User Departments:
Inadequate involvement in identifying needs, preparing
specifications or TOR, and evaluation;
Not preparing contract implementation reports;
Negligence in handling preparation of technical
specifications and designs (working drawings)
Accounting Officers:
Improper appointment of TB, PMU, and other
committees;
Not appointing contract supervisors;
Not timely or properly handling complaints or disputes;
Not taking appropriate action against those violating the
law
INDEPENDENCE OF FUNCTIONS
Cabinet directs firm XX to be awarded a USD Q
mn contract;
Minister orders AO to award of contract to firm
YY (transaction advisor: USD 2 mn);
Minister orders AO to award of contract to firm
ZZ (major infrastructure construction project );
HPMU signs 2 contracts for a multibillion TZS
building project without AOs authorization;
In a major ICT project:
AO (not TB) removes a bidder from the process;
AO participates (lead) in post-qualification of a bidder;
Bid closing/opening:
Timing of clarification, issuing of addenda and extension
of time for submission;
Location for bid submission and opening;
Procedure for bid opening and rejection of bids during
opening many disputes
Bids opened by persons not authorised by the law
Tender opening committee not signing/initialling all read out
bids during tender opening ceremony
Late bid passed for evaluation and later rejected
TENDER EVALUATION
Not in accordance with the Guidelines and criteria in the
bidding documents;
Correction of errors not following procedures;
Questionable reasons for disqualifying bidders;
E.g. Abnormally low tender; non responsiveness
Inconsistency in applying criteria, e.g. TZS 3 bn project:
Bids rejected for not having anti-bribery pledge but one
with expired business license accepted;
Bidder puts a condition of 15% advance payment while
bidding documents state 10%;
Post-qualification done by Management instead of
evaluation committee;
Correction of errors done during contract negotiation
rather than during evaluation
AWARD OF CONTRACT
Procedure for issuing LoA not followed:
Before or after contract negotiations?
Without the approval of the tender board;
Not communicated on time;
Copies of LoA not sent to relevant authorities (AG,
PPRA, CAG, IAG);
Performance security:
Who should sign it;
Its validity period (expiry before the end of contract);
Value of the security
Violation of LoC:
Supplier paid 100% instead of contractual 40% in a
USD 1.28 mn contract;
Approval granted at speed by an unauthorized person
DAYLIGHT THEFTY
Construction of a bus station: DDD Council
Scope: Contractor to supply paving bricks for
7,000 m2 at a cost of TZS 182,000,000;
Contractor supplied the whole quantity as per the
contract;
Council admitted to have received the amount
and paid the full amount due to contractor;
Audit by PPRA shows only 3,561m2 paved
equivalent to TZS 92,586,000;
Where did the 3,439m2 worth TZS 89,414,000 go?
CONCLUDING REMARKS
Be careful with any project without a proper
feasibility study;
Make a comparative analysis of the cost of a
project with similar projects;
Consider available systems and infrastructure to
avoid unnecessary duplication of efforts;
Comply with the Act, Regulations and procedures
when undertaking projects;
Contracts should be properly prepared and
effectively managed;
Short of all these, it will be hard to achieve VFM
and desired project outcomes