This document summarizes the evolution of public sector procurement in Singapore from a manual paper-based system to a more digital centralized system. It discusses how procurement processes have evolved from strict rules in the IM3B manual to more principles-based guidelines. The document also outlines some common procurement risks such as corruption, non-compliance, and loss of value for money. It proposes ways to manage these risks such as segregating duties, educating staff, implementing strong systems like GeBIZ, and establishing mitigating controls and oversight over the procurement process.
This chapter discusses revenue recognition principles and guidelines. It covers recognition at the point of sale, before delivery for long-term contracts using the percentage-of-completion or completed-contract methods, and after delivery using installment, cost recovery or deposit methods. It also addresses departures from the sale basis, such as sales with buyback agreements or rights of return, and improper practices like trade loading and channel stuffing.
The document provides an overview of procurement procedures for development projects funded by IFAD. It discusses the importance of proper procurement, responsibilities of various parties, regulatory frameworks, procurement methods, and key steps in the procurement process. The roles of the borrower/project management unit and IFAD are outlined. Misprocurement and the review of prequalification of bidders are also covered.
This document discusses the procurement cycle and the key steps involved. It begins with an introduction to the procurement cycle and what it entails. The main steps in the procurement cycle are then outlined as: need identification, procurement planning, requirement specification, tender solicitation, tender preparation, tender evaluation, contract award, and contract performance. Several important documents in the procurement cycle are also defined, such as requests for proposals, requests for information, requests for quotations, solicitations, offers, contracts and amendments/modifications. Finally, the "5R's in procurement" are listed as obtaining the right quality, quantity, price, place and time.
• Authority or the Purchasing Manager
• Execution of Contract and Purchase Orders by the Purchasing Manager
• Essential of a Purchase Contract
• The Requirement for a Contract
• Offer
• Invitation to Do Business
• Counteroffer
• The Time Limits of an Offer
• Firm Offers
• Option Contracts
• Bid Bonds
• Promissory Estoppels
• Oral Contract
• Term of Contract
The Role of Claims Construction in Patent Valuationipspat
The document discusses various methods for patent valuation, including transaction-based, litigation-based, and accounting-based contexts. It describes common valuation methodologies like cost, market, and income approaches. Specific IP valuation methods are also covered, such as rules of thumb, industry standards, rating/ranking, and real options analysis. The role of claims construction in valuation is that future methods may better value patents based on the exclusionary scope defined by the claims.
Control And Compliance In Public Sector ProcurementEe Chuan Yoong
The presentation covers public sector procurement risk and controls from an auditor\'s perspective. It gives an overview of how public sector procurement in Singapore has evolved and the risks that procurement managers, professionals, control and risks managers, internal/external auditors should be alert to when dealing with risks in procurement.
Defence Acquisition Procedures Offset Guidelines and Opportunities in Defe...IPPAI
This document discusses India's defence acquisition procedures, budget, procurement process, and offset guidelines. It provides details on the annual defence budget amounts from 2009-2014 and budget allocation across the armed forces. It outlines the Defence Procurement Procedure and Manual, categorization process, sanctioning authorities, and differences between the two. Finally, it explains India's defence offset policy, eligible products and services, methods for discharging offsets, and the roles of agencies involved in managing offsets.
This document summarizes the evolution of public sector procurement in Singapore from a manual paper-based system to a more digital centralized system. It discusses how procurement processes have evolved from strict rules in the IM3B manual to more principles-based guidelines. The document also outlines some common procurement risks such as corruption, non-compliance, and loss of value for money. It proposes ways to manage these risks such as segregating duties, educating staff, implementing strong systems like GeBIZ, and establishing mitigating controls and oversight over the procurement process.
This chapter discusses revenue recognition principles and guidelines. It covers recognition at the point of sale, before delivery for long-term contracts using the percentage-of-completion or completed-contract methods, and after delivery using installment, cost recovery or deposit methods. It also addresses departures from the sale basis, such as sales with buyback agreements or rights of return, and improper practices like trade loading and channel stuffing.
The document provides an overview of procurement procedures for development projects funded by IFAD. It discusses the importance of proper procurement, responsibilities of various parties, regulatory frameworks, procurement methods, and key steps in the procurement process. The roles of the borrower/project management unit and IFAD are outlined. Misprocurement and the review of prequalification of bidders are also covered.
This document discusses the procurement cycle and the key steps involved. It begins with an introduction to the procurement cycle and what it entails. The main steps in the procurement cycle are then outlined as: need identification, procurement planning, requirement specification, tender solicitation, tender preparation, tender evaluation, contract award, and contract performance. Several important documents in the procurement cycle are also defined, such as requests for proposals, requests for information, requests for quotations, solicitations, offers, contracts and amendments/modifications. Finally, the "5R's in procurement" are listed as obtaining the right quality, quantity, price, place and time.
• Authority or the Purchasing Manager
• Execution of Contract and Purchase Orders by the Purchasing Manager
• Essential of a Purchase Contract
• The Requirement for a Contract
• Offer
• Invitation to Do Business
• Counteroffer
• The Time Limits of an Offer
• Firm Offers
• Option Contracts
• Bid Bonds
• Promissory Estoppels
• Oral Contract
• Term of Contract
The Role of Claims Construction in Patent Valuationipspat
The document discusses various methods for patent valuation, including transaction-based, litigation-based, and accounting-based contexts. It describes common valuation methodologies like cost, market, and income approaches. Specific IP valuation methods are also covered, such as rules of thumb, industry standards, rating/ranking, and real options analysis. The role of claims construction in valuation is that future methods may better value patents based on the exclusionary scope defined by the claims.
Control And Compliance In Public Sector ProcurementEe Chuan Yoong
The presentation covers public sector procurement risk and controls from an auditor\'s perspective. It gives an overview of how public sector procurement in Singapore has evolved and the risks that procurement managers, professionals, control and risks managers, internal/external auditors should be alert to when dealing with risks in procurement.
Defence Acquisition Procedures Offset Guidelines and Opportunities in Defe...IPPAI
This document discusses India's defence acquisition procedures, budget, procurement process, and offset guidelines. It provides details on the annual defence budget amounts from 2009-2014 and budget allocation across the armed forces. It outlines the Defence Procurement Procedure and Manual, categorization process, sanctioning authorities, and differences between the two. Finally, it explains India's defence offset policy, eligible products and services, methods for discharging offsets, and the roles of agencies involved in managing offsets.
This document provides an overview and outline of a procurement training course. The course will cover procurement fundamentals including clarifying industry terms, the procurement process, determining needs, finding suppliers, bidding, negotiation, selecting suppliers, and formalizing agreements. It will be delivered by Business Services Support Limited and produced by Sheila Elliott, an expert in business, accounting, and management. The objectives are to provide an introduction, structure the content, and convey key outcomes.
Public procurement is the purchase by governments of goods, services and works and accounts for 13% of GDP in OECD member countries. It is the government activity most vulnerable to waste, fraud and corruption. Integrity in public procurement is essential in maintaining citizens’ trust in government. More information at www.oecd.org/gov/ethics/procurement
Procurement training course -introduction to procurementSheila Elliott
Business Services Support offers its introduction to procurement training course for buyers. Buyers learn how to procure goods and services effectively to maximise value for their organisation. Value is a concept that many are unclear about. Procurement adds value through better product development, increased customer satisfaction, improved net cash flow and profitability and much more. Our course materials help you understand the nitty gritty of effective purchasing and procurement skills.
Procurement Training|Introduction to procurement and best practice procuremen...Sheila Elliott
Procurement Training Course Modules For Those Involved In Procurement Activities. Delivered by www.businessservicessupport.com BSS Management Consultancy. Go to businessservicessupport dot com to find out more about our training courses.
1. The document outlines the Defence Procurement Procedure (DPP) 2016 established by the Ministry of Defence in India.
2. It summarizes the history and revisions of the DPP since 2002 to enhance self-reliance in defence manufacturing and leverage opportunities for the Indian defence industry.
3. The DPP 2016 aims to institutionalize, streamline and simplify the procurement process to boost 'Make in India' and promote indigenous design, development and manufacturing while maintaining transparency and accountability.
Purchasing, Procurement, Vendor, Contract and RFP Process Management with Sha...Optimus BT
Using the Document management, Collaborative and Self service features of SharePoint to implement a turn key procurement management business solution, that will streamline the procurement process, help you comply with regulations, enable you manage contracts, empower self service and participative procurement, aid in informed procurement decisions, in executing an effective procurement strategy and make your procurement function hassle free. Optimus BT is a leader in providing Procurement software and other turnkey solutions using SharePoint.
The document discusses the procurement process in SAP. It involves determining requirements through a purchase requisition or MRP, sourcing suppliers through requests for quotation, selecting vendors, and generating a purchase order. The purchasing, warehousing, and invoice verification departments are then involved in goods receipt, and invoice and payment processing. Special procurement types like stock transfers, subcontracting, and consignment are also outlined.
This document provides an overview of procurement best practices, including governance, strategy, category management, supplier selection and contract management. It discusses key concepts like centralized vs decentralized procurement structures, collaboration strategies, spend analysis tools, sourcing options, award criteria, performance management, contract changes and reviews. The document aims to outline best practices across the entire procurement cycle from identifying needs to contract closure and review.
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
The webinar discussed the internal auditor's role in preventing issues like fraud and inappropriate transactions. It provided 4 examples of situations encountered by the presenters: (1) a petty cash fraud where one employee stole over $60k, (2) questionable expense claims by a CFO that lacked proper oversight, (3) an unacceptable procurement process where fake invoices were used, and (4) a CEO misusing credit cards and contracts without proper approval. For each, it described what went wrong, what could have been done to prevent it, and how internal auditors can help by reviewing processes, performing audits, and training on red flags. The presenters then highlighted common red flags for auditors to watch out for.
This document discusses ways to encourage more small and medium enterprise (SME) participation in procurement processes. It provides background on EU procurement rules aimed at opening public sector purchasing across Europe. Shortlisting criteria for financial standing and technical ability are discussed, noting the need to balance proportional standards with the risk of exclusion. The document also examines dividing projects into lots, pre-procurement communications, tender requirements, risk allocation, frameworks, lean procurement methods, and award evaluation processes in relation to SME involvement.
The document discusses maximizing revenue through contract compliance and licensing reviews. It provides an overview of what a license compliance program is and its objectives, such as protecting intellectual property, ensuring accurate reporting and payments, and identifying incremental revenue opportunities. The document outlines keys to designing and implementing an effective compliance program, including gaining management support, understanding existing agreements, developing controls and processes, and systematically enforcing compliance through reviews. It also discusses how contract language impacts revenue and compliance, emphasizing the importance of clear definitions, audit rights, and other terms.
Canada’s competition and foreign investment laws are now enforced with more vigour than ever -- the Blakes Competition, Antitrust & Foreign Investment Group provides practical guidance on how to get regulatory approval for mergers, strategic alliances and joint ventures in this increasingly challenging enforcement environment.
Procurement audit training course- Procurement TrainingSheila Elliott
Business Services Support Limited offer procurement audit training course as part of its training programme. This presentation takes you through some of the salient points to watch for in procurement auditing.
2022 mordinised OVERVIEW OF REGULATIONS.pptxaduyaw
The document discusses different approaches to regulation, including command and control, self-regulation, incentive-based regulation, and market-based mechanisms. It provides examples of each type of regulation and analyzes their strengths and weaknesses. The key points covered are:
- Command and control regulation sets defined standards and uses legal sanctions to enforce compliance but can be complex and lead to regulatory capture.
- Self-regulation involves industries developing their own rules but can be seen as undemocratic and self-serving.
- Incentive-based regulation uses rewards and penalties to modify behavior but rules may be complex and hard to predict the impact.
- Market-based mechanisms rely on market forces like competition laws but depend
To gain maximum from the contracts, it is imperative to manage these contractual obligations well. Without a proper contract obligation system in place, it is hard to ascertain whether a business deal is working as per the terms and conditions or if there is a breach of contract. Important milestones of delivery, payment, and more may easily get missed.
Few contracts contain penalty clauses that are to be enforced whenever specific obligations are not met by a contracting party. Not tracking & non-compliance to these contract obligations can lead to missed opportunities and may translate into heavy financial losses for an organization.
Managing these promises in the form of obligations, commitments, SLAs, and entitlements enshrined in contract clauses and terms have three key challenges.
The document provides an overview of common issues that arise in conducting due diligence and transactions in China. It discusses typical deal processes and common financial, operational, and regulatory issues seen, such as lack of financial reporting integrity, complex ownership structures, weak internal controls, and non-compliance with labor laws. It also presents a case study on the liquidation of Moulin Global Eyecare, where warning signs of financial irregularities were overlooked, resulting in inability to verify assets and realize value for lenders.
Presentation 4.2 Procurement and integrity pactsjohnabutterworth
This document discusses corruption in procurement processes for water and sanitation projects. It provides examples of corruption that occurred with the Lesotho Highlands Water Project, including bribery in contract awarding. Procurement is identified as being at high risk for corruption due to factors like its size, complexity, and competition. The document outlines stages in procurement where corruption risks are highest and provides some best practices to reduce corruption, including integrity pacts where bidders and governments pledge not to engage in bribery.
This document provides an overview of procurement and contract processes. It discusses key procurement concepts like the procurement cycle, methods of procurement for goods, works and services. The principles of public procurement are described as economy, efficiency, fairness and transparency. Contract administration responsibilities of the architect/project engineer are also outlined, such as ensuring construction follows plans and specifications, authorizing personnel, studying documents for errors or omissions, and addressing any delays. Standard bidding and contract documents from organizations like FIDIC, ADB and PPMO are also referenced.
This document provides auditors with red flags to help identify circumstances indicating the need for further audit work related to procurement fraud. It outlines red flags in areas like procurement, contracts, payments, and processes. Examples are given of where things have gone wrong in the past. Controls to mitigate fraud risks are also listed. The goal is to help auditors recognize potential issues and ensure expected controls are in place during their audits.
This document discusses the impact of IFRS 3 on accounting for acquisitions. Some of the key impacts include:
- Results will be more unpredictable due to more frequent and rigorous impairment testing of acquired assets. Greater analysis of targets will be required.
- Value will be harder to demonstrate as more acquisition costs must be expensed immediately rather than included in goodwill.
- No merger accounting is allowed; an acquirer must be identified for each transaction.
- Deal structures may change as the end of merger accounting removes constraints. More cash deals are likely.
- More work will be required as the acquisition process needs to be more rigorous from planning through execution to withstand market scrutiny. Expert valuation
This document provides an overview and outline of a procurement training course. The course will cover procurement fundamentals including clarifying industry terms, the procurement process, determining needs, finding suppliers, bidding, negotiation, selecting suppliers, and formalizing agreements. It will be delivered by Business Services Support Limited and produced by Sheila Elliott, an expert in business, accounting, and management. The objectives are to provide an introduction, structure the content, and convey key outcomes.
Public procurement is the purchase by governments of goods, services and works and accounts for 13% of GDP in OECD member countries. It is the government activity most vulnerable to waste, fraud and corruption. Integrity in public procurement is essential in maintaining citizens’ trust in government. More information at www.oecd.org/gov/ethics/procurement
Procurement training course -introduction to procurementSheila Elliott
Business Services Support offers its introduction to procurement training course for buyers. Buyers learn how to procure goods and services effectively to maximise value for their organisation. Value is a concept that many are unclear about. Procurement adds value through better product development, increased customer satisfaction, improved net cash flow and profitability and much more. Our course materials help you understand the nitty gritty of effective purchasing and procurement skills.
Procurement Training|Introduction to procurement and best practice procuremen...Sheila Elliott
Procurement Training Course Modules For Those Involved In Procurement Activities. Delivered by www.businessservicessupport.com BSS Management Consultancy. Go to businessservicessupport dot com to find out more about our training courses.
1. The document outlines the Defence Procurement Procedure (DPP) 2016 established by the Ministry of Defence in India.
2. It summarizes the history and revisions of the DPP since 2002 to enhance self-reliance in defence manufacturing and leverage opportunities for the Indian defence industry.
3. The DPP 2016 aims to institutionalize, streamline and simplify the procurement process to boost 'Make in India' and promote indigenous design, development and manufacturing while maintaining transparency and accountability.
Purchasing, Procurement, Vendor, Contract and RFP Process Management with Sha...Optimus BT
Using the Document management, Collaborative and Self service features of SharePoint to implement a turn key procurement management business solution, that will streamline the procurement process, help you comply with regulations, enable you manage contracts, empower self service and participative procurement, aid in informed procurement decisions, in executing an effective procurement strategy and make your procurement function hassle free. Optimus BT is a leader in providing Procurement software and other turnkey solutions using SharePoint.
The document discusses the procurement process in SAP. It involves determining requirements through a purchase requisition or MRP, sourcing suppliers through requests for quotation, selecting vendors, and generating a purchase order. The purchasing, warehousing, and invoice verification departments are then involved in goods receipt, and invoice and payment processing. Special procurement types like stock transfers, subcontracting, and consignment are also outlined.
This document provides an overview of procurement best practices, including governance, strategy, category management, supplier selection and contract management. It discusses key concepts like centralized vs decentralized procurement structures, collaboration strategies, spend analysis tools, sourcing options, award criteria, performance management, contract changes and reviews. The document aims to outline best practices across the entire procurement cycle from identifying needs to contract closure and review.
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
The webinar discussed the internal auditor's role in preventing issues like fraud and inappropriate transactions. It provided 4 examples of situations encountered by the presenters: (1) a petty cash fraud where one employee stole over $60k, (2) questionable expense claims by a CFO that lacked proper oversight, (3) an unacceptable procurement process where fake invoices were used, and (4) a CEO misusing credit cards and contracts without proper approval. For each, it described what went wrong, what could have been done to prevent it, and how internal auditors can help by reviewing processes, performing audits, and training on red flags. The presenters then highlighted common red flags for auditors to watch out for.
This document discusses ways to encourage more small and medium enterprise (SME) participation in procurement processes. It provides background on EU procurement rules aimed at opening public sector purchasing across Europe. Shortlisting criteria for financial standing and technical ability are discussed, noting the need to balance proportional standards with the risk of exclusion. The document also examines dividing projects into lots, pre-procurement communications, tender requirements, risk allocation, frameworks, lean procurement methods, and award evaluation processes in relation to SME involvement.
The document discusses maximizing revenue through contract compliance and licensing reviews. It provides an overview of what a license compliance program is and its objectives, such as protecting intellectual property, ensuring accurate reporting and payments, and identifying incremental revenue opportunities. The document outlines keys to designing and implementing an effective compliance program, including gaining management support, understanding existing agreements, developing controls and processes, and systematically enforcing compliance through reviews. It also discusses how contract language impacts revenue and compliance, emphasizing the importance of clear definitions, audit rights, and other terms.
Canada’s competition and foreign investment laws are now enforced with more vigour than ever -- the Blakes Competition, Antitrust & Foreign Investment Group provides practical guidance on how to get regulatory approval for mergers, strategic alliances and joint ventures in this increasingly challenging enforcement environment.
Procurement audit training course- Procurement TrainingSheila Elliott
Business Services Support Limited offer procurement audit training course as part of its training programme. This presentation takes you through some of the salient points to watch for in procurement auditing.
2022 mordinised OVERVIEW OF REGULATIONS.pptxaduyaw
The document discusses different approaches to regulation, including command and control, self-regulation, incentive-based regulation, and market-based mechanisms. It provides examples of each type of regulation and analyzes their strengths and weaknesses. The key points covered are:
- Command and control regulation sets defined standards and uses legal sanctions to enforce compliance but can be complex and lead to regulatory capture.
- Self-regulation involves industries developing their own rules but can be seen as undemocratic and self-serving.
- Incentive-based regulation uses rewards and penalties to modify behavior but rules may be complex and hard to predict the impact.
- Market-based mechanisms rely on market forces like competition laws but depend
To gain maximum from the contracts, it is imperative to manage these contractual obligations well. Without a proper contract obligation system in place, it is hard to ascertain whether a business deal is working as per the terms and conditions or if there is a breach of contract. Important milestones of delivery, payment, and more may easily get missed.
Few contracts contain penalty clauses that are to be enforced whenever specific obligations are not met by a contracting party. Not tracking & non-compliance to these contract obligations can lead to missed opportunities and may translate into heavy financial losses for an organization.
Managing these promises in the form of obligations, commitments, SLAs, and entitlements enshrined in contract clauses and terms have three key challenges.
The document provides an overview of common issues that arise in conducting due diligence and transactions in China. It discusses typical deal processes and common financial, operational, and regulatory issues seen, such as lack of financial reporting integrity, complex ownership structures, weak internal controls, and non-compliance with labor laws. It also presents a case study on the liquidation of Moulin Global Eyecare, where warning signs of financial irregularities were overlooked, resulting in inability to verify assets and realize value for lenders.
Presentation 4.2 Procurement and integrity pactsjohnabutterworth
This document discusses corruption in procurement processes for water and sanitation projects. It provides examples of corruption that occurred with the Lesotho Highlands Water Project, including bribery in contract awarding. Procurement is identified as being at high risk for corruption due to factors like its size, complexity, and competition. The document outlines stages in procurement where corruption risks are highest and provides some best practices to reduce corruption, including integrity pacts where bidders and governments pledge not to engage in bribery.
This document provides an overview of procurement and contract processes. It discusses key procurement concepts like the procurement cycle, methods of procurement for goods, works and services. The principles of public procurement are described as economy, efficiency, fairness and transparency. Contract administration responsibilities of the architect/project engineer are also outlined, such as ensuring construction follows plans and specifications, authorizing personnel, studying documents for errors or omissions, and addressing any delays. Standard bidding and contract documents from organizations like FIDIC, ADB and PPMO are also referenced.
This document provides auditors with red flags to help identify circumstances indicating the need for further audit work related to procurement fraud. It outlines red flags in areas like procurement, contracts, payments, and processes. Examples are given of where things have gone wrong in the past. Controls to mitigate fraud risks are also listed. The goal is to help auditors recognize potential issues and ensure expected controls are in place during their audits.
This document discusses the impact of IFRS 3 on accounting for acquisitions. Some of the key impacts include:
- Results will be more unpredictable due to more frequent and rigorous impairment testing of acquired assets. Greater analysis of targets will be required.
- Value will be harder to demonstrate as more acquisition costs must be expensed immediately rather than included in goodwill.
- No merger accounting is allowed; an acquirer must be identified for each transaction.
- Deal structures may change as the end of merger accounting removes constraints. More cash deals are likely.
- More work will be required as the acquisition process needs to be more rigorous from planning through execution to withstand market scrutiny. Expert valuation
IFRS 3 makes significant changes to the accounting for business combinations that will impact M&A strategy and transparency. Key impacts include:
- All combinations will be treated as acquisitions, eliminating merger accounting. More intangible assets will be identified and recognized.
- Goodwill will no longer be amortized but subject to annual impairment testing, likely resulting in more impairment charges.
- Negative goodwill will be recognized immediately in income rather than amortized. Restructuring costs will also impact earnings.
- Greater disclosures will be required on acquisition costs, asset valuations, and impairment testing, increasing transparency but also the resources required.
This document discusses the impact of IFRS 3 on accounting for acquisitions. Some of the key impacts include:
- Results will be more unpredictable due to more frequent and rigorous impairment testing of acquired assets. Greater analysis of the target will be required.
- Value will be harder to demonstrate as more of an acquisition's costs must be expensed as incurred rather than included in goodwill.
- No merger accounting will be allowed. Deal structures may change as a result.
- The acquisition process will require more rigorous evaluation of targets, structuring of deals, and valuation of intangible assets to withstand greater market scrutiny under the new transparency requirements.
Procurement design is critical to the success of government contracting. Two key case studies are highlighted:
1) Melbourne trams and trains franchises - The franchises were operationally successful but one operator withdrew after suffering $300 million in losses due to an unrealistic bid based on misunderstanding requirements and overestimating patronage. Officials were found to have generated "bid fever" where price was the sole factor.
2) National Health Service IT project - The project was beset by delays and cost overruns after requirements were poorly defined at the start. Officials failed to properly understand the scale and complexity of the project.
The lessons are that procurement officials must clearly define requirements upfront, avoid competitions solely
Procurement design is critical to the success of government contracting. Two key case studies are highlighted:
1) Melbourne trams and trains franchises - The franchises were operationally successful but one operator withdrew after suffering $300 million in losses due to an unrealistic bid based on misunderstanding requirements and overestimating patronage. Officials were found to have generated "bid fever" where price was the sole factor.
2) National Health Service IT project - The project was beset by delays and cost overruns after requirements were poorly defined at the start. Officials failed to properly understand the scale and complexity of the project.
The lessons are that procurement officials must clearly define requirements upfront, avoid competitions solely
Procurement design is crucial to the success of government contracting. Officials must clearly specify requirements and select suitable partners at commercially sustainable prices. However, in some cases studied, contracts were signed before projects were fully defined. Additionally, excessive focus on price over quality and unrealistic assessments of requirements led to failures, as seen in the Melbourne trams and trains example where the leading operator withdrew due to large financial losses. Proper procurement design is key to aligning public and private interests and avoiding controversies.
Significance of due diligence as a procedure reportRuchita Sangare
This document outlines the steps involved in conducting due diligence for a business transaction. It begins with an introduction on the significance and objectives of due diligence. It then discusses the key areas of focus in a due diligence report, such as viability, financials, personnel, and technology. The document describes the typical transactions that require due diligence, like mergers and acquisitions. It provides details on the planning, data collection, data analysis, and reporting phases of due diligence. Specifically, it explains defining the scope and team structure, finalizing information requirements, and analyzing collected data.
The document provides an overview and agenda for a G-Cloud BuyCamp event. It discusses:
- The background and vision of G-Cloud to provide cloud-based public sector IT services through an online marketplace.
- How to buy services through the key stages of preparing requirements, searching the CloudStore catalog, shortlisting, selecting, and awarding contracts.
- Organizational challenges public sectors buyers may face in adopting cloud services and how to address collaboration, skills gaps, and process issues.
- Next steps to improve the CloudStore catalog, provide more case studies and guidance, and further drive adoption of the G-Cloud framework across government.
This document summarizes a webcast for not-for-profits and governments on accounting, auditing and regulatory updates. It provides information on welcoming participants, continuing professional education credits, presenters and objectives. The session will cover recent regulatory issues, impacts of new auditing standards, likely audit emphasis areas, and implementation of new accounting standards to assist with preparation for 2012 audits. It includes polling questions to gauge participants' organizations and areas of focus.
Similar to Control And Compliance In Public Sector Procurement 18 Aug 2010 (20)
6. Principles remain similar i e open and fair
i.e.
competition, transparency and value-for-money
(or previously “lowest cost meeting
specifications”)
ifi i ”)
Procurement processes were very manual
IM3B – Government Instruction Manual on
Procurement prescriptive rules for manual
handling of procurement exercises
g p
Rules for quotations vs tenders
Estimated procurement value (EPV)
◦ >=$3,000 < $30,000 – quotations
◦ > $70,000- tenders
6
8. Quotations
◦ Less onerous compliance wise to tenders
◦ Confidentiality of quotations
◦ Fax quotations vs mailed quotations
l d
◦ Dedicated fax, officer opening etc.
◦ Posting of quotations on notice board
g q
◦ Finance Circular No 3/2010 [11 August 2010] Changes
to the Quotation Process
Minimum Conditions of Contract for Quotation
Publication of Quotation Schedule and Corrigendum Changes
P bli i
Publication of Reasons f Quotations that are “Cancelled” or
fR for Q i h “C ll d”
“No Award”
8
9. Tenders
◦ Offer by vendors – more legal documentation as it
is binding
◦ Confidentiality and integrity important
Tender boxes system with dual key
Tender opening committee
Tender witnessing officers
Evaluation b committee
E l i by i
Award by approving authorities based on value
◦ Posting of bids on notice boards
9
10. Centralisation to de-centralisation
◦ THEN
Central procurement office (CPO)
Stationeries e.g. pens obtained via CPO
Savings from bulk purchases but spoilage from stock
obsolescence, matching demand/supply
◦ NOW
Decentralised
E.g. e-Catalogue buy, bulk tender, GeBIZ
You buy what you need, block budget aproach
10
11. IM3B to IM on procurement
◦ THEN
Instruction manuals came in paper files
Updating was a pain, manually cross out super-ceded
paras, paste over new paras etc.
People were more controls & rules conscious
◦ NOW
Web based
Web-based
Ease of reference and ease of forgetting (in some
cases)
)
11
12. Inherent Risks
◦ Procurement is susceptible to corruption (in
general)
◦ E.g. vendors gifts, ang-pows, free samples
◦ Non-compliances can threaten openness, fairness
and transparency occur
◦ Laxity in contract management can result in loss of
value-for-money
al e for mone
◦ Report of the Auditor-General highlights cases of
non-compliance
non compliance
12
13. In the past:
◦ AG’s Report 1994/1995
Audit of Purchases under United States Foreign Military
Sales Programme
Review of Financial Systems of Singapore Armed Forces
Sports Association
S A i i
Compliance with Government Procurement Procedures
by Statutory Boards
13
17. Recently – Report of the Auditor-General
FY2008/09, Auditor-General’s Overview
Areas of concern
◦ Laxity in procurement and contract management
◦ Lack of financial prudence in procurement and poor
management of contracts and agreements
◦ Resulting in higher expenditure for goods and
g g g
services
17
18. Areas of concern (cont’d)
(cont d)
◦ Under-performance not detected
◦ Penalties for non-performance not imposed
non performance
◦ Revenues due not collected
◦ Little or no assurance of value-for-money in
y
projects carried out
18
23. People
◦ Clear from AGO report that lapses are due to the
way people interpret and enforce the rules as well
as implementing the procedures
◦ IM3B now more principles-based, i.e. more room
for people to interpret hence critical to educate
staff handling procedure about how to apply the
principles
◦ IM3B now provides case studies to help us
◦ But still need to inculcate controls consciousness
23
24. People
◦ Segregation of responsibilities
Not one person do everything
GeBIZ – different roles, e.g. goods received and goods
inspection must be different officers, purchasing
officer also cannot be approving etc.
ffi l b i
Previously can circumvent if manual, now with GeBIZ
roles, more difficult
Evaluation team for tenders shouldn’t all be from the
same dept/team
◦ Education and awareness of IM 3B (and 3G)
◦ Trade-off between controls and efficiency
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25. System of procurement
◦ Implement systems and processes that adhere to
IM3
◦ But public agencies do vary in implementation
E.g. of SBs that had dubious quotations
◦ Get internal audit to review
◦ Perhaps external audit may review
However, does not focus too much on internal controls
over procurement, i.e. more concerned about validity
and authorisation, completeness of recording of
purchasing and payment transactions then
procurement principles: openness, fairness and
transparency
25
26. GeBIZ: A game changer
◦ Controls are built into the procurement process
◦ More difficult (but not impossible!) to circumvent
relative to manual processes
◦ Examples
Openness of web invitations to quotes and invitations
to tenders and request for proposals (global)
Routing for approvals
Publication of awards
f
◦ Make full use of GeBIZ
Because you HAVE to (SBs MUST follow IM3)
Because it’s good for your agency
26
27. Some issues for procurement managers to
consider:
◦ To what extent does your agency adhere to IM3B/G?
◦ To what extent is your standard operating
p
procedures for p
procurement in line with IM3B/G?
◦ How familiar are your people with IM3B/G principles
and procedures (i.e. GeBIZ use)
◦ Have you set-up assurance and audit of
d d f
procurement
Get your internal audit to look into it
Ask your external auditor to look into it
27
28. Understand your own control and compliance
issues first
Auditor-General s
Auditor General’s Office will carry out audits
on a rotational basis
◦ Your turn for procurement or contracts audit by
AGO will (eventually!) come
◦ At least minimise or reduce number of findings by
g y
AGO (or your agency will be featured in Report of
the Auditor-General FY 20XX/XX
28