Overview

Public procurement management in Punjab like in most developing countries needs a lot improvement. Laws, Rules and Regulations are non-existent, inadequately implemented or enforced. Capacity and morale of the work force are low whereas, accountability and transparency on need basis. Public procurement practitioners face challenges from both external and internal environments. The former include legal, political, economic and business and socio-cultural environments. The latter is related to three factors: People who make procurement decisions, proceedures which provide a guidance to the practitioners; and controls which ensure probity, transparency and accountability. In order to deal effectively with the challenges an adequate and independent audit mechanism should be formed that manages to balance between the financial and performance audit.

In Pakistan current procurement regime started functioning in 2002 when the Government of Pakistan created PPRA at Federal level through a presidential ordinance. The system was strengthened by adding Public Procurement Rules 2004 and Public Procurement Regulations 2008. The Punjab Province adopted the system in 2007 through an ordinance which was under the same nomenclature was converted into an Act 2009. Punjab Procurement Rules 2009 (PPR-09) were also notified in the same year to beef-up the procurement system in the province. The enforcement of Law/Rules however, remained passive due to absence of proper office of the Punjab Procurement Regulatory Authority. The enforcement of any Law/Rule requires its proper awareness and orientation. In order to achieve an extensive capacity building, a programme has been launched ambitting all the Public Sector Organizations down to Town Municipal Administration level. A high power committee under the Chairpersonship of Additional Chief Secretary, Punjab has been constituted to revisit the Public Procurement Laws/Rules so as to bring them inconformity with the Public Sector Organizaion’s Requirements without astraying from the International best practices. Four new procurement related Rules/Documents such as Procurement Regulations, Code of Ethics for Public Procurement, Public Procurement Checklist, Public Procurement Consultancy Service Rules, Draft Standard Bidding Document and Draft Contract Agreement are under consideration with the forum (Planning & Development Department).

Increased expenditure and quantum of procurement has created an opportunity for corruption and waste public procurement. In order to vitiate and minimize the chances of the malpractices, the proposed Rules and Regulations have been drafted. The main focus of these Laws would be to ensure transparency and accountability as these are the key inducement to individual and instructional probity, a key deterrent to collusion and corruption, and a key prerequisite for procurement credibility. The salient features of the current procurement system include a regulatory body mandated to monitor the public procurement activities, legal framework elaborating a mechanism as well as procedure on public acquisition of goods, works and services by the public sector enterprises, establishment of grievance redressal/appeal mechanism exclusively for settlement of complaints on the contract management issue, a mechanism for wide dissemination of Government policy decision, procurement opportunities and results of evaluation exercises for award of contracts and regulatory arrangements for ensuring access to information on the public procurement system.

Background

The procurement regime in Punjab Province has undergone three stage evolution. Prior to 1985 the public sector procurement was conducted by the Procurement Wing of Industries Department. Due to increasing quantum of procurement the setup had gone to almost a stale level, which necessitated to shift to decentralize mode. Allowing for the grown requirements the Punjab Government through purchase manual in 1985 made a paradigm shift from a centralized mode of procurement to decentralized mode of a procurement system. The Public Sector Organization were allowed to make their purchases at their own level through their purchase committees headed by Administrative Secretaries of the Department or the Head of the Organization. The purchase manual was revised in 1988 in order to conform to the requirements, however, lacked in transparent procurement procedures which thwart genuine business, no grievance redressal mechanism, bid negotiation lead to kick back negotiation as it discouraged bidders to quote their best price etc. In order to vitiate the ills existing in the procurement system and to achieve best value for money, efficiency, transparency, accountability, fair competition and good governance, new procurement system has been brought in by promulgating PPRA Act and Rules 2014.  The new system fully responds to the international best practices. There is a uniformity in the procurement system at the Federal and Provincial level.

Our Functions

Section 5 of the PPRA Act 2009 stipulates the following mandate and responsibilities of the Authority:
  • The Authority may take measures and exercise powers as may be necessary for improving governance, management, transparency, accountability and quality of public procurement
  • Monitor application of the laws, rules, regulations, policies and procedures in respect of, or relating to the public procurement
  • Prepare standard documents to be used in connection with public procurement
  • Establish performance indicators for procurement performance of the Procuring Agencies and monitor compliance with these indicators through independent third party evaluation and make recommendations for improvement of procurement performance of the Procuring Agencies
  • Present an annual report to the Government regarding the overall functioning of the public procurement system, including recommendations on measures to be taken by the Government to enhance the quality of procurement work
  • Call a functionary of a Procuring Agency to provide assistance in its functions and call for information from a Procuring Agency pursuance of its objectives and functions
  • Develop, promote and support training and professional development policy of officials and other persons engaged in public procurement
  • Perform other function as may be assigned to it by the Government

Our Strategies

PPRA is aiming at inducting in public procurements elements of fairness and transparency, economy and efficiency and value for money. In order to achieve these objectives, PPRA has assumed various strategies and roles accordingly.

Awareness of PPRA Laws / Rules

Assigned with Monitoring of Application of Laws/ Rules/ Regulations in Respect of Public Procurement

Regulatory

  • To Take Measures Necessary for Improving Monitoring, Transparency, Accountability, and Management of Public Procurement
  • To Make Regulations and Lay Down Codes of Ethics and Procedures for Public Procurement, Inspection, Quality  of  Procurement
  • To Recommend to the Government Revisions in or  Formulation of  New Laws, Rules, and Policies in Respect of  or Related to Public Procurement
  • To Prepare Standard Documents to be used in Connection with Public Procurement

Advisory

Issue Guidance and Instructions Regarding Interpretation and Implementation of PPRA Act, Rules and Regulations

Strategies

Our Services

PPRA provide several services to procuring agencies. Most of the services are web based; these services include:

  • Uploading of Procurement Advertisements, Annual Procurement Plan, Approval Mechanism, via Decentralized System (e-Tender Management)
  • Public Procurements (Active & Archive) View
  • Evaluation Reports Uploading
  • Capacity Building of Procuring Agencies across the Punjab
  • Tendering Advices
  • Prompt Guidance regarding Procurement (via telephone / e-mail)
  • Signup Form Creation
  • e-Violation Highlighting System
  • Complaint Management
  • Standard Checklist
  • Standard Performa of Tender, Annual Procurement Plan, Approval Mechanism and Evaluation Report
  • Responsive Online Query System
  • Online Procurement System for procurements via Quotations
  • Public Manufacturing Unit enlistment on website
  • Contract Agreement uploading against relevant procurement advertisement
  • PPRA MIS to capture records of procurement of Rs. 100,000/- and above