Planning is a legal Obligation
• PPA:Section-11 and PPR-16:
Procurement Planning is mandatory for all
Procuring Entity (PE)
PP must be approved by the Head of the
Procuring Entity (HOPE) or by the officer
empowered by the HOPE
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Four Key Words
Item
Lot
Package
Contract
A single article or unit in a list.
With an identified quantity ….. 1,2,3 etc
A number of items grouped together
Any number of items can form a lot
A group of lots forming a contract
No package can have more than 5 lots
The agreement between the PE and
Supplier/Contractor/Consultant and
enforceable by law
Through which the package is
purchased
Package & Procurement Methods
PE decides
Splitting /Assembling
packages
Applicability of the
Procurement methods
considering the nature & size
of the procurement , by carefully
reviewing the proposed
procurement activities & issues
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Combination of Lot
• Items of same nature & generally supplied
by a particular group of supplier and
normally available in a single shop or in a
market. (Computer and Air Cooler should
not be in the same lot while scanner,
printer and computer should be in a single
lot)
• Suppliers availability and ability also to be
considered
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Packages
Few or More?? Large or Small ??
Arguments in favour of Groupings into
Few Large Procurement Packages
►Benefits from economics of scale-achievement
of economy & efficiency
►Management aspects ( PE’s capacity to manage
the whole project)
►Risk aspect (where failure of a sub-supplier may
unduly affect critical path)
►Benefits from participation of large International
Tenderers
►Administrative costs of tendering
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Packages
Few or More?? Large or Small ??
Arguments in favour of Splitting into
more small Packages
►Time element (procurement
items are needed at different
times)
►Business structure( some good
or services are not available
from a single source)
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Three Initial Steps
1. Categorize procurement into:
Goods
Works
Services
2. Consider time scale and combine into
contract packages….. assign a unique
Code Number
3. Make packages as large as practicable
for improved participation and
competition.
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Packages
Splitting of Packages for avoiding particular
method or sanction from Higher authority
have been prohibited in the Act/Rules
But
HOPE or AO may approve splitting
to smaller packages & lots on
justifiable grounds
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Splitting of Packages
PE shall not generally split a
Project components with the
intention of avoiding either
method or the approval of a
higher authority
►PE shall not usually split a
package into more than five ( 5)
lots for keeping cross –discounts
application simple
►
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Splitting of Packages (Contd.)
►PE
shall take into account the
following aspects for splitting single
object of Procurement
 the capacity of the local &
international markets in submitting
responsive Tenders
 the convenience of implementation
with due regard to geographical
location of sites for potential Works
contracts.
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Packages
Classified by category such as
Goods, Works and Services
Separate for Development Project
and Revenue Budget
Revenue Budget is not needed for
SPM
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Key Issues
► PE shall arrange to publish the
Procurement Plans on their notice boards,
and where applicable in their websites & in
the websites of the concerned Department
or Directorate or organizations, bulletins
and reports (PPR- 16.9)
►PE shall, for its own purposes, update the
Procurement Plan on a quarterly basis to
accommodate delays, re-tendering & other
unforeseen changes or constraints (PPR-6.10).
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Key Issues (contd.)
Publication in CPTU website
Procurement Plans, above the
threshold, specified in
Schedule II shall be published
in CPTU website on a regular
basis (PPR- 16.11).
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Procurement Scheduling Process
Seven Key Steps in preparing the
Procurement Plan
1. List objects to be acquired under the Project or
Programme, categorizing procurement into:
►Goods (Section 2.16)
( raw materials, products, equipment and objects in solid,
liquid or gaseous form, electricity & related services)
(readily useable)
► Works (section 2. 6)
( construction, reconstruction, site preparation, demolition,
repair, maintenance or renovation railways,roads,
highways or building etc. as well as physical services)
► Services (section 2. 24 )
(intellectual & professional services)
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Procurement Scheduling Process
( cont’d)
2. Consider time scale and determine target
dates when each goods or works or
services should be ready for use, within the
overall project implementation framework
3. Identify Interrelationship between the
processing of these procurement objects
4. Decide on the content of Individual
Procurement Packages.
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Procurement Scheduling Process
(contd.)
5. Determine the procurement lead times for
each package & schedule the target date
for each event in the procurement
process
6. Prepare Implementation Schedule –
Table, Bar Chart or list identifying key
dates of each package ( Gantt Chart)
7. Develop a Monitoring System to ensure
timely procurement decisions &
Implementation follow-up actions.
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Procurement Plan Formats
Procurement Plan has been made an
integral part of DPP by the Government.
Procurement Plans for the both the Dev and
Revenue Project are to be prepared in the
Formats prescribed by the Government from
time to time.
(For SPM World Bank Format as supplied)
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Total Procurement Plan for
Development Project
• Identifies:
 The packages for goods, works and
services that are required under the
development project.
 Each procurement package, giving it a
unique code and considers the
expected cost of the package (as per
the PP/TAPP), and
 The anticipated dates when the
procurement package will be supplied
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Annual Procurement Plan for
Development & Revenue Budgets
• Time bound PP
assists a Procuring
Entity to effectively
plan its procurement
requirements and is
an important and
useful tool used to
monitor the progress
of procurement
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PP for SPM
A. to ensure that it
does not go astray;
B. to ensure that
early problems
with slippage can
be dealt with
promptly; and
C. can form a useful
Annual Plan for
procurement.
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Procurement Methods
•PPA section: 31-34
•PPR: 61-62, 69,74,83,
& 103-104
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Frequently used Proc Methods
for Goods & Works
• OTM (Open Tendering Method) (PPR-61)
(WB term it National Competitive Bidding )
• ICB (International Competitive Bidding)
(International Tender) (PPR-83)
• RFQ (request for Quotation) (PPR- 69)
• Direct Contacting (Direct Cash Purchase
and Others methods) (PPR- 75)
NCB
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Proc Methods for services
frequently used by SPM
• CQ (Consultant Qualification) (normally firm)
(PPR-108)
• IC (Individual Consultant) (PPR-112 )
• FBS (fixed Budget Selection) (PPR- 106)
• LCS (Least Cost Selection) (PPR-107)
• QCBS (Quality Cost Based Selection) (PPR- 105)
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Procurement Plan Format
Column 4: Unit (unit of measurement)
Goods: Numbers, Pieces, Liter, meter, Lot
etc
Works: Cubic Meter, Square meter, Lump
sum etc
Service: Staff Months, Days, Hours , lump
sum etc
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Procurement Plan Format
Column 10: Planned Date of Bid opening
(Actual Date of Bid Opening)
• We are to follow the provision PPR-61(4),
64(5) 71(4) and 83 (1) (ka)
• Time from publication of invitation to bid
opening depends on threshold and proc
methods
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Procurement Plan Format
Column 11: Planned Date of Contract
Signing (Actual Date of signing)
• Signing of Contact depends not only on PE but
also on the Supplier/ contractor/ Consultant.
• Period of Evaluation, approval by the proper
authority, issuance of NOA, Suppliers
acceptance, Submission of performance
security, are the factors to be considered
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Procurement Plan Format
Column 12: Planned Date of Completion
(Actual date of completion)
• It depend on the Size/ Quantity/ Volume/
market situation/suppliers ability/ urgency/
weather/transport facilities/availability of
funds and so many things. We are to
consider all these.
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World Bank Format for PP
Sl Contact
No Package
No
1
2
1
G-1
Contact Description
2
G-2
Printing of Lab Operation Manual
3
G-10
Printing Quarterly Newsletter
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Supply of a microbus
World Bank Format for PP
Sl.
No
Contact Description
1
Contact
Package
No.
2
W1
2
W2
3
W3
Construction of two latrin for
female students
Repair of laboratory room of
Physic dept
1
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Sand filling to play ground
World Bank Format for PP
Sl. Contract
No package
No.
1
2
1
S1
Contract description
2
S2
Selection of local partnership for network design
and implementation
3
S3
Selection of Digital Library
specialist
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3
Website dev and maintenance for
BUD
World Bank Format for PP
Unit
Quantity/ Estimated
numbers cost (Actual
Contract
Price)
Procure
ment
Method
Procure
ment
Guidelin
e
(PPA/BG)
4
Unit of
measu
rement
5
1,5,3
etc
6
US$
BDT.
7
8
OTM/ICB/ PPA/
RFQ/CQ/
IC etc
BG
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World Bank Format for PP
Prior
Planned Date
Review of Bid
(yes/no) opening/
Proposal
Submission
(Actual date
of Bid
opening/ )
9
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Planned
Date of
contract
signing
(actual Date
of contract
signing)
Planned
Date of
Delivery/
completion
(actual
date of
delivery/
completion
11
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Miscellaneous
• Basic principle is not to be adopt any ill tactics
• Keep budget provision for honurium
• Training and foreign visit not to be
included in planning
• Lump Sum Contract: A contract for the
performance of a specified amount of work
by a specified date for a sum established
in advance
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Queries ??
• If you have any query please do not
hesitate to contact HEQEP procurement
unit
Procurement specialists and procurement
officers are always ready to response your
queries.
BAU:June 16, 2011
Thanks.
Md. Alamgir Hossain
Procurement Officer
HEQEP
Phone: 01819567424
Email:alamgir4158@yahoo.com
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