Public Procurement and Asset
Disposal System
24th November 2010
Tshepo Sayed, Economist
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
1
Presentation outline
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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
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
2
Establishment
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PPADB was established through an Act of Parliament:
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PPADB CAP 42:08
Started operation 2nd July 2002.
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Previously procurement was regulated through Supplies
Regulation
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Public procurement and asset disposal reforms began in
February 1998.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
3
Factors leading to system review
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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,.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
4
PPADB Structure
Executive Chairman
CSM
HR & Admin
OBS
Finance
IT
Registry
Legal Services
Dir. Supplies
Dir. Works
DM Supplies
Dir. Services
DM Works
Specialists
DM Services
Specialists
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
Specialists
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Scope of the PPADB
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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
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
6
Functions and principles of the PPADB
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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
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
7
Some key features of the system
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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.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
8
Objectives of Bidding
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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..
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
9
Bidding Process
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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4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
10
Preparation for tender
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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.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
11
Organization of the bidding process for
procurement
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Identifying the need and selection of
appropriate tender method (PE);
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);
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
12
Organization of the bidding process for
procurement ( Cont)
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Evaluating and rating bidders (PE);
Submitting recommendations for award (PE);
Adjudication and award (PPADB);
Bidder debriefing (PE);
Contract Implementation (PE).
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
13
Reservation Policies
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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.”
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
14
-(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
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
15
Who May participate
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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.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
16
Contractor Registration( Legislative
Requirement Section 116 &49 )
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PPADB is mandated to maintain a current
register of contractors in works, supplies and
services
 PPADB shall be responsible for all aspects of
the management of contractor registration
system including decisions on:’#
 Application for registration
 Reclassification
 Discipline of contractors
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
17
Legislative Requirement Section 116
&49
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The Board shall be cognizant at all times
of:
Work load and
 Performance record of contractors
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Non- registered contractors shall be
disqualified from tendering except where
it is stated that the registration is not an
eligibility requirement to participate.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
18
Registration
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Is mandatory for contractors domiciled in
Botswana intending to bid for Government
procurement and asset disposal.
 Registration for service provides and suppliers
commenced in earnest on the 15th August
2011
 A transition period of one year given, after
which registration will be an eligibility
requirement
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
19
Categorisation and Coding
Works contractors (Code 01-99)
 Service Providers ( Code 100-199)
 Suppliers ( Code 200-299)
 Consultants ( Code 300-399)
 All the above are further classified into
sub-codes
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4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
20
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By virtue of regsitration contractors shall be bound to
conform with the code of conduct.
Code of conduct promotes:
 Professionalism
 Guidance on responsibilities
 Standard of conduct for contractors
Contractors may be suspended or delisted the Board
for:
 Non compliance with the code of conduct
 Defaulting on the execution of contracts
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
21
Enforcing Suspension
During the suspension period:
 Suspended contractors are debarred
from registering a newly incorporated
entity with PPADB
 Other contractors will be debarred if they
employ defaulting shareholders,
directors or senor officers in key
operational positions
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4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
22
Adjudication and award
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Approve : PE recommendations and award the tender
to the recommended bidders
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 reconsideration
 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.
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
23
Dispute Resolution Mechanism
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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
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
24
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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4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
25
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)
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
26
EXPENDITURE OF MINISTRIES
MDJS, 1.60%
MYSC, 0.01%
OP
OP, 2.30%
MOH
MLG, 12%
MLHA, 1.70%
MIST
MOH, 21%
MTC
MIST, 0.60%
MFDP
MOE
MOA
MMEWR, 33.60%
MTC, 21%
MLH
MEWT
MMEWR
MLHA
MYSC
MDJS
MFDP, 1.60%
MEWT, 1.40%
4/13/2015
MLH,
0.30%
MLG
MOE, 0.90%
MOA, 3.80%
To be the centre of excellence for public
procurement and asset disposal by
2018
27
Board Award decisions per Ministry( 2009/2010)
MINISTRY
Awards(P million)
OP
26,834,481.29
MOH
257,743,641.53
MIST
7,608,757.75
MTC
250,208,634.04
MFDP
18,904,898.19
MOE
11,275,430.58
MOA
44,760,786.32
MLH
3,969,639.26
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
28
Cont
MMEWR
394,252,172.89
MLHA
20,271,539.03
MEWT
16,178,249.92
MYSC
116,699.11
MDJS
18,284,300.21
MLG
140,902,605.11
TOTAL
4/13/2015
1,172,879,645.84
To be the centre of excellence for public
procurement and asset disposal by
2018
29
Conclusion
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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
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
30
Thank you
Address queries to:
Executive Chairman
P/Bag 0058 Gaborone
Plot 8913 Maakgadigau Way
Gaborone West Industrial Site
Tel: 3906853
Fax: 3906822
4/13/2015
To be the centre of excellence for public
procurement and asset disposal by
2018
31