Public procurement involves government agencies obtaining goods, services, and technologies using public funds. It contributes 15-20% of GDP in India and is governed by rules like the General Financial Rules. Major areas of public procurement include defense, railways, health, and telecom which together account for around 50% of public procurement. The primary objective is to achieve value for money by procuring best goods and services at lowest cost. Common procurement mechanisms involve a tendering process with separate evaluation of technical and financial bids. Some examples of bid rigging in public procurement cases in India include companies submitting identical bids or dividing markets. Factors that can indicate bid rigging include identical pricing, last minute adjustments to bids, and suppliers meeting privately before submitting
- Public procurement accounts for 20-30% of global and India's GDP respectively and presents opportunities for cost savings.
- India's public procurement is estimated at Rs. 8,00,255 crore annually between central and state governments as well as public sector undertakings.
- However, loopholes like limited tenders, tailor-made specifications, and middlemen inflate costs. Transparency is lacking as many states lack procurement laws.
- Strictly following rules for open tenders, pre-qualification criteria, budget estimates, negotiation only with L1 bidder can ensure fairness and value for money.
This document discusses e-procurement and provides details about its objectives, key stakeholders, technical architecture, new processes, governance issues, current status, issues and challenges, and best practices. The main points are:
1. E-procurement aims to automate the entire procurement process online to reduce costs and cycle times, increase transparency and supplier participation, and eliminate corruption.
2. Key stakeholders in e-procurement include government ministries, central departments, and suppliers. The technical architecture allows for online publishing of tenders, bid submission, payments, and contract awards.
3. Global case studies show e-procurement can deliver substantial benefits through increased efficiency, competition, and transparency, but requires strong leadership, appropriate policy
E-bidding is the process of bidding through electronic medium and is one of the three stages of e-procurement along with e-execution and e-payment. It provides a more transparent bidding process and promotes free and fair competition to save government resources. The e-bidding module has components for the site administrator, buyers, bidders, and general viewers. It facilitates tender notices, bid submission and modification, and secure storage of submitted bids. Fully implementing e-bidding in Nepal requires addressing issues like training manpower, unreliable power supply, and internet connectivity problems.
The document discusses bid evaluation procedures for public procurement. It outlines the objectives of ensuring a transparent and fair procurement process that achieves value for money. It states that bid evaluation aims to secure goods and services at the most economical cost, while considering factors beyond price like delivery times, payment terms, and technical merits. The criteria for evaluation should be predefined in bid documents. A fair evaluation follows the defined strategy, considers whole life costs, and uses a logical, systematic process. The bid evaluation report documents reasons for rejection, commercial and technical comparisons of responsive bids, and recommends contract award.
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.
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
The document outlines the principles and methodologies for bid evaluation. It discusses preliminary bid examination including major, minor and debatable deviations. It also describes the detailed evaluation process including correction of errors, application of discounts, and examination of unbalanced bids. Post-qualification verification is mentioned as well as potential reasons for rejection of all bids. Clarification with bidders during evaluation is also summarized.
The document provides instructions to bidders for a standard bidding process for minor construction contracts. It outlines sections included in the bidding documents, requirements for bid preparation and submission, procedures for bid opening and evaluation, and criteria for awarding the contract. Key points include: the bidding documents consist of instructions, forms, conditions of contract, and technical specifications; bids must be submitted by the deadline and in the required format; bids will be opened and evaluated for responsiveness by the employer. The winning bid will be awarded based on meeting eligibility criteria and having the lowest evaluated price.
- Public procurement accounts for 20-30% of global and India's GDP respectively and presents opportunities for cost savings.
- India's public procurement is estimated at Rs. 8,00,255 crore annually between central and state governments as well as public sector undertakings.
- However, loopholes like limited tenders, tailor-made specifications, and middlemen inflate costs. Transparency is lacking as many states lack procurement laws.
- Strictly following rules for open tenders, pre-qualification criteria, budget estimates, negotiation only with L1 bidder can ensure fairness and value for money.
This document discusses e-procurement and provides details about its objectives, key stakeholders, technical architecture, new processes, governance issues, current status, issues and challenges, and best practices. The main points are:
1. E-procurement aims to automate the entire procurement process online to reduce costs and cycle times, increase transparency and supplier participation, and eliminate corruption.
2. Key stakeholders in e-procurement include government ministries, central departments, and suppliers. The technical architecture allows for online publishing of tenders, bid submission, payments, and contract awards.
3. Global case studies show e-procurement can deliver substantial benefits through increased efficiency, competition, and transparency, but requires strong leadership, appropriate policy
E-bidding is the process of bidding through electronic medium and is one of the three stages of e-procurement along with e-execution and e-payment. It provides a more transparent bidding process and promotes free and fair competition to save government resources. The e-bidding module has components for the site administrator, buyers, bidders, and general viewers. It facilitates tender notices, bid submission and modification, and secure storage of submitted bids. Fully implementing e-bidding in Nepal requires addressing issues like training manpower, unreliable power supply, and internet connectivity problems.
The document discusses bid evaluation procedures for public procurement. It outlines the objectives of ensuring a transparent and fair procurement process that achieves value for money. It states that bid evaluation aims to secure goods and services at the most economical cost, while considering factors beyond price like delivery times, payment terms, and technical merits. The criteria for evaluation should be predefined in bid documents. A fair evaluation follows the defined strategy, considers whole life costs, and uses a logical, systematic process. The bid evaluation report documents reasons for rejection, commercial and technical comparisons of responsive bids, and recommends contract award.
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.
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
The document outlines the principles and methodologies for bid evaluation. It discusses preliminary bid examination including major, minor and debatable deviations. It also describes the detailed evaluation process including correction of errors, application of discounts, and examination of unbalanced bids. Post-qualification verification is mentioned as well as potential reasons for rejection of all bids. Clarification with bidders during evaluation is also summarized.
The document provides instructions to bidders for a standard bidding process for minor construction contracts. It outlines sections included in the bidding documents, requirements for bid preparation and submission, procedures for bid opening and evaluation, and criteria for awarding the contract. Key points include: the bidding documents consist of instructions, forms, conditions of contract, and technical specifications; bids must be submitted by the deadline and in the required format; bids will be opened and evaluated for responsiveness by the employer. The winning bid will be awarded based on meeting eligibility criteria and having the lowest evaluated price.
This document discusses the process for evaluating bids and awarding contracts for projects. It outlines the key stages of bid evaluation including technical and financial assessments to determine the best combined offer. The evaluation is done by experienced staff and maintains confidentiality. The contract is awarded to the bidder whose bid is determined to be the lowest evaluated and substantially responsive to the bidding documents. Unsuccessful bidders are notified and the award decision is published with reasons for selecting the winning contractor.
This document provides an introduction and overview of procurement processes. It discusses that procurement involves obtaining goods, works, and services through an appropriate process. A key goal of procurement processes is to ensure quality, economy, and timeliness. The process should also adhere to standards, provide fair opportunities, and ensure honesty, transparency, and confidentiality. Ethics in procurement include avoiding conflicts of interest and not accepting gifts. Responsible entities in procurement include the procuring entity, procurement committee, and technical evaluation committee. Their roles include preparing documents, evaluating bids, and making decisions. Guidelines for procurement include those from FIDIC, the World Bank, ADB, and national agencies.
The document describes a procurement audit training program offered by the International Training Centre of the International Labour Organisation (ITC-ILO) in Turin, Italy. The training aims to enhance the capacity of national and international financial institution staff to assess procurement operations for compliance and value for money. The training uses interactive presentations, group discussions, and case studies. It covers topics like analyzing procurement contexts and risks, developing audit objectives and plans, and executing audits. The target participants are those responsible for procurement audits and oversight. The cost of the one-week program is Euro 2,000 and covers tuition, facilities, accommodation, and meals.
This document provides guidance on bid and proposal evaluation for government buyers. It outlines how to properly evaluate preferences, conduct a two-step bid process, determine fair pricing, establish evaluation criteria, and set up a scoring system. It emphasizes ensuring requirements are realistic and evaluation criteria is objective. The document also discusses how to verify a bidder's ability to perform as proposed, such as through references, bonds, or warrantees. Pricing must be evaluated separately from other criteria, and preferences properly calculated. Techniques for price analysis are also provided to help determine if pricing is too high.
The document discusses the tender process for construction projects. It involves project definition, selecting tenderers, issuing tender documentation, criteria for selection, calling for tenders, tender meetings, amendments, submission and closing, tender analysis of work experience, price, company finances and personnel, ongoing projects, and conformity to conditions. Selection criteria include conformity, capability, innovation, price and construction period. Tenders can be rejected for noncompliance, incomplete details, too high or low prices, too much work in progress, insufficient finances, or unsatisfactory records.
This document outlines the steps in defining a business need and developing a procurement strategy. The key steps are:
1. Define the business need by capturing requirements, obtaining stakeholder buy-in, and estimating budgets.
2. Develop a procurement strategy through activities like a team kick-off meeting, market research to identify potential solutions, defining success criteria, and agreeing on a procurement approach.
3. Evaluate and select suppliers by developing a pre-qualification strategy to filter suppliers, scoring and notifying suppliers, launching a tender, and further assessing and filtering suppliers to create a shortlist.
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.
PPRA rules 2004, Rules relating to Procurement by procuring agencies i.e. Institutions coming under the Federal Government. Guidelines for procurement. Topic relating to commercial functions of Government's procurement agencies
This document outlines various procurement methods used for government projects in Sri Lanka. It describes national competitive bidding (NCB) for projects valued under Rs. 300 million, international competitive bidding (ICB) for higher value or specialized projects, and limited bidding variants. It also covers shopping, direct contracting, repeat orders, force account, two-stage bidding, two-envelope submission, and pre-qualification of bidders - outlining the objectives and processes for each procurement method.
This document outlines the rules and procedures for procuring consulting and non-consulting services according to the General Financial Rules of the Government of India. It discusses identifying qualified consultants or contractors, preparing terms of reference and requests for proposals, evaluating bids, and monitoring contracts. The key methods for consultant selection are Quality and Cost Based Selection, Least Cost Selection, and single source selection in exceptional cases.
Procurement is the acquisition of goods, services, or works from an external source. It aims to obtain the best quality and cost while promoting fair competition. Considerations in procurement include speed, cost, quality, constraints, risk, ownership, and financing. Public sector procurement uses contracts to increase efficiency and transparency. E-procurement systems manage tenders online globally. Procurement types include single, stock, vendor-managed inventory, just-in-time, and just-in-sequence. Procurement fraud can involve dishonestly obtaining an advantage during the procurement process.
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.
Procurement contract type is an important PMP topic. It is one such topic that which forms the base for procurement knowledge areas
The webinar on Procurement Contract Type is a base that forms the relationship between the buyer and the seller. This is a formal agreement unlike any other verbal agreement it has to be documented with precise details.
Three types of Procurement Contract Type are discussed with examples. Pros and cons of each contract type are given so as to give a clear idea of what all is involved while making the legal agreement.
For more details related to PMP exam or our upcoming PMP events visit https://www.facebook.com/izenbridge
This document discusses public procurement rules and regulations in Pakistan as outlined by the Punjab Procurement Regulatory Authority (PPRA). It provides details on the composition and functions of the PPRA board, the definition of a "procuring agency", procurement procedures including acquisition of goods, services and construction work, principles of fair competition and value for money, steps in the procurement process from planning to contract management, and regulations around bidding, blacklisting, and grievance redressal. Key terms discussed include tender, bid, prequalification, direct contracting, and repeat orders. The document also contains sample MCQs to test understanding of public procurement concepts.
Public procurement regularity authority (ppra)TaseerBaloch1
The document discusses the Public Procurement Regularity Authority (PPRA) of Pakistan. It provides background on the need for procurement reforms that led to the establishment of PPRA in 2002. It outlines PPRA's functions of improving governance and transparency in public procurement. It also describes PPRA's legal framework and the public procurement rules and regulations it has established. The document then provides details on the public procurement process and cycle in Pakistan according to PPRA's rules and guidelines.
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.
E : Electronic
Procurement : the process of obtaining supplies, especially for an government or organization
E- Procurement : the business-to-business purchase and sale of supplies and services over the Internet.
Also Known as: Supplier Exchange
Definition: E-procurement is the business-to-business purchase and sale of supplies and services over the Internet.
The document discusses bid evaluation objectives and process. It aims to identify:
1. The stages of bid evaluation including preliminary examination, detailed evaluation, and post-qualification to determine the lowest evaluated substantially responsive qualified bid.
2. The evaluation criteria used such as lowest quoted bid, lowest evaluated bid, and factors considered like price, delivery period, and life cycle costs.
3. The objectives of bid evaluation are to select the bid that results in the lowest actual expenditures for the employer while ensuring quality, compliance with requirements, and qualifications of the bidder.
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 discusses the process for evaluating bids and awarding contracts for projects. It outlines the key stages of bid evaluation including technical and financial assessments to determine the best combined offer. The evaluation is done by experienced staff and maintains confidentiality. The contract is awarded to the bidder whose bid is determined to be the lowest evaluated and substantially responsive to the bidding documents. Unsuccessful bidders are notified and the award decision is published with reasons for selecting the winning contractor.
This document provides an introduction and overview of procurement processes. It discusses that procurement involves obtaining goods, works, and services through an appropriate process. A key goal of procurement processes is to ensure quality, economy, and timeliness. The process should also adhere to standards, provide fair opportunities, and ensure honesty, transparency, and confidentiality. Ethics in procurement include avoiding conflicts of interest and not accepting gifts. Responsible entities in procurement include the procuring entity, procurement committee, and technical evaluation committee. Their roles include preparing documents, evaluating bids, and making decisions. Guidelines for procurement include those from FIDIC, the World Bank, ADB, and national agencies.
The document describes a procurement audit training program offered by the International Training Centre of the International Labour Organisation (ITC-ILO) in Turin, Italy. The training aims to enhance the capacity of national and international financial institution staff to assess procurement operations for compliance and value for money. The training uses interactive presentations, group discussions, and case studies. It covers topics like analyzing procurement contexts and risks, developing audit objectives and plans, and executing audits. The target participants are those responsible for procurement audits and oversight. The cost of the one-week program is Euro 2,000 and covers tuition, facilities, accommodation, and meals.
This document provides guidance on bid and proposal evaluation for government buyers. It outlines how to properly evaluate preferences, conduct a two-step bid process, determine fair pricing, establish evaluation criteria, and set up a scoring system. It emphasizes ensuring requirements are realistic and evaluation criteria is objective. The document also discusses how to verify a bidder's ability to perform as proposed, such as through references, bonds, or warrantees. Pricing must be evaluated separately from other criteria, and preferences properly calculated. Techniques for price analysis are also provided to help determine if pricing is too high.
The document discusses the tender process for construction projects. It involves project definition, selecting tenderers, issuing tender documentation, criteria for selection, calling for tenders, tender meetings, amendments, submission and closing, tender analysis of work experience, price, company finances and personnel, ongoing projects, and conformity to conditions. Selection criteria include conformity, capability, innovation, price and construction period. Tenders can be rejected for noncompliance, incomplete details, too high or low prices, too much work in progress, insufficient finances, or unsatisfactory records.
This document outlines the steps in defining a business need and developing a procurement strategy. The key steps are:
1. Define the business need by capturing requirements, obtaining stakeholder buy-in, and estimating budgets.
2. Develop a procurement strategy through activities like a team kick-off meeting, market research to identify potential solutions, defining success criteria, and agreeing on a procurement approach.
3. Evaluate and select suppliers by developing a pre-qualification strategy to filter suppliers, scoring and notifying suppliers, launching a tender, and further assessing and filtering suppliers to create a shortlist.
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.
PPRA rules 2004, Rules relating to Procurement by procuring agencies i.e. Institutions coming under the Federal Government. Guidelines for procurement. Topic relating to commercial functions of Government's procurement agencies
This document outlines various procurement methods used for government projects in Sri Lanka. It describes national competitive bidding (NCB) for projects valued under Rs. 300 million, international competitive bidding (ICB) for higher value or specialized projects, and limited bidding variants. It also covers shopping, direct contracting, repeat orders, force account, two-stage bidding, two-envelope submission, and pre-qualification of bidders - outlining the objectives and processes for each procurement method.
This document outlines the rules and procedures for procuring consulting and non-consulting services according to the General Financial Rules of the Government of India. It discusses identifying qualified consultants or contractors, preparing terms of reference and requests for proposals, evaluating bids, and monitoring contracts. The key methods for consultant selection are Quality and Cost Based Selection, Least Cost Selection, and single source selection in exceptional cases.
Procurement is the acquisition of goods, services, or works from an external source. It aims to obtain the best quality and cost while promoting fair competition. Considerations in procurement include speed, cost, quality, constraints, risk, ownership, and financing. Public sector procurement uses contracts to increase efficiency and transparency. E-procurement systems manage tenders online globally. Procurement types include single, stock, vendor-managed inventory, just-in-time, and just-in-sequence. Procurement fraud can involve dishonestly obtaining an advantage during the procurement process.
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.
Procurement contract type is an important PMP topic. It is one such topic that which forms the base for procurement knowledge areas
The webinar on Procurement Contract Type is a base that forms the relationship between the buyer and the seller. This is a formal agreement unlike any other verbal agreement it has to be documented with precise details.
Three types of Procurement Contract Type are discussed with examples. Pros and cons of each contract type are given so as to give a clear idea of what all is involved while making the legal agreement.
For more details related to PMP exam or our upcoming PMP events visit https://www.facebook.com/izenbridge
This document discusses public procurement rules and regulations in Pakistan as outlined by the Punjab Procurement Regulatory Authority (PPRA). It provides details on the composition and functions of the PPRA board, the definition of a "procuring agency", procurement procedures including acquisition of goods, services and construction work, principles of fair competition and value for money, steps in the procurement process from planning to contract management, and regulations around bidding, blacklisting, and grievance redressal. Key terms discussed include tender, bid, prequalification, direct contracting, and repeat orders. The document also contains sample MCQs to test understanding of public procurement concepts.
Public procurement regularity authority (ppra)TaseerBaloch1
The document discusses the Public Procurement Regularity Authority (PPRA) of Pakistan. It provides background on the need for procurement reforms that led to the establishment of PPRA in 2002. It outlines PPRA's functions of improving governance and transparency in public procurement. It also describes PPRA's legal framework and the public procurement rules and regulations it has established. The document then provides details on the public procurement process and cycle in Pakistan according to PPRA's rules and guidelines.
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.
E : Electronic
Procurement : the process of obtaining supplies, especially for an government or organization
E- Procurement : the business-to-business purchase and sale of supplies and services over the Internet.
Also Known as: Supplier Exchange
Definition: E-procurement is the business-to-business purchase and sale of supplies and services over the Internet.
The document discusses bid evaluation objectives and process. It aims to identify:
1. The stages of bid evaluation including preliminary examination, detailed evaluation, and post-qualification to determine the lowest evaluated substantially responsive qualified bid.
2. The evaluation criteria used such as lowest quoted bid, lowest evaluated bid, and factors considered like price, delivery period, and life cycle costs.
3. The objectives of bid evaluation are to select the bid that results in the lowest actual expenditures for the employer while ensuring quality, compliance with requirements, and qualifications of the bidder.
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.
“Public Procurement Reform and Importance in the
Current Economic Climate”
Pamela Bigart, Lead Procurement Specialist, World Bank
Ms. Bigart will speak about the importance of Public Procurement Systems in how public
money is spent, overall spending in procurement in different countries, the role of technology
in improving procurement processes, as well as specific procurement reforms.
This document summarizes the findings of a study on opportunities and hurdles for enabling sustainable public procurement (SPP) in Vietnam. It describes how public procurement is currently organized and identifies opportunities for SPP through Vietnam's existing legal framework, including laws on the environment, prevention of corruption, and centralized purchasing methods. However, it also notes hurdles like a lack of connection between laws, specific EIA guidelines, and environmental product labels. Overall capacity and inter-ministerial cooperation need strengthening to fully implement SPP in Vietnam.
This document outlines an agenda and presentation on EU procurement rules for tendering. The presentation covers: an introduction; sources of EU law and principles; the procurement process; frameworks; supplier notification; legal challenges; and recent changes under new directives. Key points include an overview of EU treaty rules requiring open competition; the hierarchy of EU directives, UK law, and court rulings; and the importance of transparency, equal treatment and proportionality in procurement.
The document discusses public procurement review systems in EU member states. It provides information on the bodies responsible for review, including that they must be independent and have powers to impose interim measures, set aside unlawful decisions, and award damages. It notes that EU states have flexibility in their review mechanisms. There is a variety of institutional setups, including ordinary courts, specialized review bodies, and administrative courts handling the review process. The document also gives examples of the review structure in several EU countries and Poland, including discussion of appeal processes, legal basis, and timelines for decision making.
1) Georgia reformed its procurement system to increase transparency and competition by implementing a 100% electronic procurement system called Ge-GP.
2) Ge-GP increased transparency by allowing anyone to see tender information and question tenders in real-time. It also streamlined dispute resolution.
3) Studies found that Ge-GP saved over 600 million GEL in public funds and increased participation from over 21,000 registered users and 330 foreign bidders.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document outlines Brett Tabke's experience building a popular post on the website WebmasterWorld about how to earn $15k per day through 26 steps. The post received over 29 million page views and 5 million unique visitors, but also resulted in Brett receiving over 200 copies of the post published elsewhere and 290 cease and desist notices issued, with his total income from the post being $500.
Honorary Lecture by Prof. Giancarlo Spagnolo at IMPPM Opening Ceremony, University of Rome Tor Vergata, March 1, 2016.
To read more research articles, please visit https://www.hhs.se/site
The document discusses measuring efficiency in international public procurement. It analyzes data on over 500 contracts that went through the World Bank's prior review process. On average, it takes 286 days to sign a contract from issuing the initial procurement notice, but there are outliers with much longer times. National competitive bidding contracts tend to take less time than international competitive bidding contracts. Contract value, country capacity and governance also influence time taken. However, current World Bank tracking systems cannot provide detailed data on time taken for individual procurement process steps, limiting analysis of delays. Improving data collection could help identify resources used, iterations and complexity to better diagnose delays.
The document discusses public procurement policy and system in the Republic of Moldova. It provides the following key points:
- The system is decentralized, with contracting authorities responsible for planning and executing contracts, while the Ministry of Finance coordinates policies.
- Several public institutions play roles in supervision: the Ministry of Finance develops policies; the Public Procurement Agency implements policies and registers contracts; the Financial Inspection ensures protection of public financial interests; and the Court of Accounts exercises external audit control.
- There is potential for conflict of interest as the Public Procurement Agency registers contracts and also examines disputes, though a new Complaints Settlement Agency is being established to handle disputes.
- Priorities for 2014 include capacity building,
Here is a short presentation on the 4 main bid management challenges observed across industries & companies. Shipley has successfully addressed these issues for many small and large companies. We will be happy to assist you transition to a better win rate.
The project manager's survival guide to bids, tenders and proposals
presented by David Warley
Thursday 26th November 2015
APM Contracts and Procurement Specific Interest Group (SIG)
Presentation of the main findings by SIGMA experts on the corruption risk assessment of the public procurement system in Jordan, which took place in Amman on 30 January 2017.
The document outlines the competitive bid process for a construction project. It lists 20 key responsibilities in the bidding process and assigns them to various roles such as the estimator, planner, engineer, and finance. It also provides a timeline showing deadlines for when each key responsibility must be completed. The goal of the process is to tabulate all project costs, conduct a management review, finalize the bid documents, and submit the tender by the deadline of March 43rd.
The document discusses key actions for managing large-scale bid campaigns. It recommends 1) calculating click value based on conversion probability and value, 2) rewarding user choices through market modeling, and 3) watching campaign data for insights. Metrics like location data, tail phrases, and homonyms can provide information to improve targeting and increase conversions. Scaling requires both automated processes and human intervention for tasks like account setup, design, and exception analysis.
The document discusses the World Trade Center Institute (WTCI) and its role as a Private Sector Liaison Officer (PSLO) to help local firms access procurement opportunities with the World Bank Group. It provides an overview of the World Bank Group, which consists of 5 agencies that work to reduce poverty. It then outlines the World Bank Group's operational procurement process, corporate procurement opportunities, and best practices for pursuing internationally funded projects.
The document summarizes the evolution of the World Bank's procurement policy over time in response to changes in its approach and operating context. It discusses the history from 1964 to 2004, then from 2004 to 2011, and most recently from 2012 to 2014. The current reform aims to make procurement more fit-for-purpose, promote value for money, integrity, efficiency and transparency. Highlights of proposed changes include taking a more flexible, context-specific approach and supporting sustainable procurement and development effectiveness through country systems and harmonization.
Outsourcing Procurement In The Public SectorJon Hansen
When the problems of weak institutional capacities, high costs, delays, and high integrity risks are systemic in a government, outsourcing the procurement function may be a sound option to consider, whether as a short-term gap-filling measure or as a longer-term strategic approach. - ADB Report
Related Story Link: https://procureinsights.wordpress.com/2017/03/14/santa-clara-county-exec-jeffrey-smith-agrees-to-interview/
Chandigarh_Judicial_Academy_ 16th May 2015 FinalSUKESH MISHRA
This document provides an overview of competition law in India. It discusses the historical background of Indian competition law from the Monopolies and Restrictive Trade Practices Act of 1969 to the current Competition Act of 2002. It describes key aspects of the Competition Act such as its objectives, coverage, definitions of agreements and enterprises, and prohibitions on anti-competitive agreements and abuse of dominant position. It also summarizes some important cases that the Competition Commission of India has dealt with related to horizontal agreements, vertical restraints, and abuse of dominance.
Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers
The document discusses India's legal environment for business and competition law. It provides an overview of India's transition from a command economy to a more liberalized market, including the introduction of the Competition Act of 2002. The Act aims to promote fair competition in India and established the Competition Commission of India (CCI) to prevent anti-competitive practices. The CCI regulates mergers and acquisitions, abuse of dominance, and monitors anti-competitive agreements. It can impose penalties on firms found violating the Act.
6. Public Procurement Processes.pptUGUGxsahimanoj1
The document outlines key aspects of public procurement processes in India including definitions, existing instructions and guidelines, principles laid down by the Supreme Court, weaknesses in the current system, and the way forward. It discusses the salient features of the proposed Public Procurement Bill, important audit findings on irregularities in various departments, and best practices followed by organizations like Power Grid.
This document summarizes the key aspects of the Competition Act of 2002 in India. Some of the main points covered include:
- The Act established the Competition Commission of India to prevent anti-competitive practices, promote fair competition, protect consumer interests and ensure freedom of trade.
- It replaced the MRTP Act of 1969 to address the needs of the modern globalized economy. The new Act defined competition concepts, regulated combinations, and gave the Commission penalty powers.
- The Act prohibits anti-competitive agreements, abuse of dominant market positions, and regulates combinations. It established procedures for investigation and imposed penalties for non-compliance.
- Case studies demonstrate how the Commission has evaluated allegations of abuse of dominance,
This document summarizes the key aspects of the Competition Act of 2002 in India. Some of the main points covered include:
1. The Competition Act was introduced to replace the MRTP Act of 1969 and establish the Competition Commission of India (CCI) to promote fair competition in the market.
2. It aims to prevent anti-competitive practices like price fixing, bid rigging, exclusive dealing etc. and prohibits abuse of dominant market position.
3. Mergers and acquisitions are regulated under the Act to ensure they do not negatively impact competition.
4. CCI has powers to investigate anti-competitive complaints and impose penalties on violations. Its duties include protecting consumer interests and ensuring freedom of
The document discusses competition and competition policy in India. It defines competition as situations in markets where sellers strive for buyers to achieve business goals. Competition policy aims to promote efficiency and maximize welfare. The Competition Act of 2002 established a commission to prevent anti-competitive practices, promote competition, protect consumers, and ensure freedom of trade. The Act prohibits anti-competitive agreements and abuse of dominant positions. It regulates combinations and promotes competition advocacy. The Commission has powers like issuing cease/desist orders and imposing penalties.
The Competition Act, 2002 aims to promote fair competition in India and protect consumer interests. It replaced the Monopolies and Restrictive Trade Practices Act of 1969. The key objectives of the Competition Act are to prevent anti-competitive practices, promote competition, protect consumer interests, and ensure freedom of trade. The Act prohibits anti-competitive agreements between companies, abuse of dominant market position, and regulates combinations/mergers above certain financial thresholds. It established the Competition Commission of India to enforce the competition laws and regulations in the country.
The Competition Act, 2002 established the Competition Commission of India (CCI) to prevent anti-competitive practices in India. The CCI regulates combinations (mergers and acquisitions), prohibits anti-competitive agreements and abuse of dominant position. It aims to ensure fair competition in the market for economic growth and development. Some key cases show how the CCI evaluates combinations based on factors like market share and impact on competition, and prohibits anti-competitive behaviors by dominant companies.
This document discusses public procurement and bid rigging in India. It notes that public procurement is a major government activity used to support infrastructure, defense, utilities and more. There is no single body responsible for procurement policies, which are outlined in various documents. Bid rigging occurs when bidders collude to undermine the competitive bidding process. It is considered anti-competitive under the Competition Act. The Competition Commission of India can investigate alleged bid rigging. Issues in public procurement include lack of transparency, abuse of dominance, and cartel formation. Courts have emphasized transparency, fairness and eliminating irregularities in procurement.
This presentation by Ms. Jyoti Jindgar Bhanot was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
The International Journal of Engineering and Science (The IJES)theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
The document discusses competition law in India. It provides background on the Monopolies and Restrictive Trade Practices Act of 1969, which was India's first competition law. This was replaced by the landmark Competition Act of 2002, which established the Competition Commission of India to promote competition and prevent anti-competitive practices. The Act prohibits anti-competitive agreements between enterprises, abuse of dominant market positions, and regulates mergers and acquisitions. It aims to protect consumer welfare and ensure freedom of trade.
This document summarizes bid rigging and the relevant provisions in the Competition Act 2002 regarding bid rigging in India. It defines bid rigging as agreements between bidders that eliminate or reduce competition in bids or manipulate the bidding process. Common forms of bid rigging include agreements to submit identical bids, determine the lowest bidder in advance, or exclude outside bidders. The Competition Commission of India can investigate suspected bid rigging and impose penalties on parties found to be involved, including fines of up to 10% of turnover.
Calibrating the Pulse of Competition Law in Indiaelithomas202
The document discusses emerging trends in India's competition law, based on a survey conducted by EY. Some key points:
- There is a low awareness of competition law among Indian enterprises, with over 80% unaware of the law and its implications. Multi-national corporations are generally more aware and compliant.
- Dawn raids by the investigating authority are expected to increase in the coming year, increasing the need for e-discovery capabilities to examine electronic records.
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The Competition Act of 2002 established the Competition Commission of India (CCI) to prevent anti-competitive practices and promote competition. The CCI is tasked with investigating anti-competitive agreements, abuse of dominant market positions, and mergers and acquisitions. Parties to a combination are not required to notify the CCI, but the CCI can investigate combinations on its own. The CCI faces challenges due to overlapping jurisdictions, unrealistic timelines, lack of cooperation from foreign counterparts, and limited resources and infrastructure.
The document provides an overview of the Competition Act of 2002 in India. Some key points:
- The Competition Act aims to prevent anti-competitive practices and promote competition. It established the Competition Commission of India (CCI) to implement the law.
- The Act repealed the Monopolies and Restrictive Trade Practices Act of 1969, which took a narrow view of competition. The new law focuses on "appreciable adverse effects on competition."
- CCI's roles include investigating anti-competitive agreements and abuse of dominance, regulating mergers and acquisitions, conducting advocacy work, and imposing penalties on violators.
Presentation on The competition act(2002)satya pal
The document summarizes the key aspects of the Competition Act of 2002 in India. It discusses the objectives of eliminating anti-competitive practices and promoting fair competition. The main features covered are the prohibition of anti-competitive agreements such as cartels, abuse of dominant market positions, and regulations governing mergers and acquisitions. Enforcement is carried out by the Competition Commission of India through investigations and imposition of penalties. The act aims to protect consumer welfare and ensure fair competition in the market.
Similar to Presentation on public procurement and competition concern11 (20)
Presentation on public procurement and competition concern11
1.
2.
3. Public procurement can be defined as the procurement activities undertaken by
a public authority using public funds to obtain goods, services and technologies
essential for it to carry out its business.
Size: Public Procurement contribute 15-20% of GDP
(SOURCE The Public Procurement
Bill, 2011 Planning Commission Government of India.) It is governed by General
Financial Rules (GFR) and Delegation of Financial Powers Rules (DFPR)
Contribution of Department like Defense,Railway,Telecom : 50%
26% Health Budget Contributed to Public Procurement
(Source: Special address by Shri Pratyush Sinha, Former CVC-
Competition, Public Policy and Common Man,16th November 2009)
Total annual expenditure of around 15-20 Lakh Crores and that for Union
Government alone in the range of Rs. 2.5 – 3 Lakh Crores
Objective Of Public Procurement:
As public resource are limited the primary objective of public procurement is to
achieve value for money i.e. to procure best good and service at lowest cost.
4. One of most common mechanism of public procurement is
tendering system. It Involve following stages:
Identifying prescribe technological specification or standard by
government or authority concerned.
Invite Tender from various parties. Technical and Financial Bids
are invited separately.
Evaluation of Technical Bid. This help to shortlist bidder whose
financial bid are to evaluated.
Evaluation of financial bid of shortlisted bidder. After that
bidder that can provide goods and service to govt at lowest
price are identified.
Executing legally binding contract with shortlisted bidder.
5. 1.Railways: During the year 2009-10 the total expenses of Indian Railways were Rs.829
billion. The budget for procurement alone was Rs.279 billion
The procurement was done for items for manufacturing, fuel, and items for construction
as:
About 40% was for purchase of items required for manufacturing
30% for purchase of items required for repairs, operation and maintenance
27%for purchase of fuel and remaining for purchase of items required for
construction
(SOURCE: Public Procurement- a case study of the Indian Railways
(Bodhibrata Nag Associate Professor, IIM Calcutta, D. H. Road, Joka P.O., Kolkata 700 104
India)
2.Public Health Care System: The health expenditure is about 4.5% of the GDP out of
which 0.84 % is public expenditure and 3.32 % private and the remaining from other
sources including external flow.
About 25 to 35 percentage of the Government hospital budget in India is spent on drugs
and other pharmaceuticals .
(SOURCE: http://aims.amrita.edu/school-of
pharmacy/pdfs/Emerging%20trends%20in%20medicine%20procurement%20in%20gov
ernment%20sector%20in%20India.pdf )
6. 3.Defense:
The Union Budget 2012-13, has allocated US $40.3 billion for the Defence Services that
include the three armed forces (Army, Navy and Air Force), the Defence Research and
Development Organization (DRDO) and Ordnance Factories.
India’s defence budget is broadly divided into two categories: Revenue Expenditure and
Capital Expenditure
a.Revenue Expenditure: ‘running’ or ‘operating’ cost of the defence services. The
Revenue Expenditure has increased by 19.5% to $ 23.7 billion
b.Capital Expenditure: procurement of big items such as tanks, aircraft and aero engine,
ships, submarines etc. The Capital Expenditure has increased by 15% to $16.6 billion.
(SOURCE: http://www.defencereviewasia.com/articles/169/India-s-Defence-Budget-
2012-13)
4.Telecom:
Government of India has allocated an amount of Rs.30 billion in the Budget Estimate
(BE) 2012-13 out of which an amount of Rs. 25.46 billion has been allocated for
creation of National Optical Fiber Network (NOFN) for Broadband connectivity to 2.50
lakh Village Panchayats of the country which has been approved by the Cabinet.
Government is also going to provide Broadband connectivity at a cost of approx. Rs. 200
billion to all 250 thousand Gram Panchayats.
7. Competition is another important principle which plays a pivotal role in
achievement of the objectives of a procurement system.
The purpose of competition is that the government as a procurer gets the
best product/service at the best terms and of best quality, on one hand, and
on the other, ensures fulfilment of the objectives laid down by horizontal
policies.
It is also argued that competition motivates suppliers to put forward the
best possible offer to win the contract which, in turn, benefits the procuring
authority by facilitating the procurement of a cost effective option.
Hence, from the international trade perspective, competition can be said to
induce efficient functioning of markets.
Competition perspectives can be discerned both in the domestic process of
conducting procurement, and in allowing international participation in
procurement activity by the government.
8. 3 –Cs : I) Central Vigilance Commission (CVC)
ii) Comptroller and Auditor General (CAG)
iii) Competition Commission of India (CCI)
CVC : Issues guidelines and instructions to curb corruption in
PPS – SOP issued by all Govt. Departments and PSUs
CAG : Monitors the deficiency and violations in the procedures
and mechanism of PPS
CCI : Regulates competition in PPS – prevents and punishes
anti competitive conduct or practices by Govt. Departments
and enterprises
9. Definition - Bid rigging : Highly pernicious form of collusive price fixing
behaviour where bids are obtained to earn and distribute higher profits
forms of bid rigging :
Collusive bidding :Agreement between firms to divide the market, set
prices or limit production – involves, kickbacks and misrepresentation of
independence
Bid rotation: Conspiring firms continue to bid but they agree to take
turns of being the winning bidder
Cover bidding: also called complementary or symbolic bidding- where
the bidder agrees to submit bid i.e. Higher than the designated winner or
puts certain conditions unacceptable to the procurer to favour winning
bidder
Bid suppression: Bidders agree to refrain from bidding or withdraw the
bid in favour of winning bidder
Market allocation: Bidders for different geographical areas allocate the
market and based on such understanding bidding takes place as designed
10. The following factors are helpful in detecting bid rigging
The same supplier is often the lowest bidder.
There is geographic allocation of winning tenders. Some firm submit tender
that win in certain geographical areas.
Some supplier unexpectedly withdraw from bidding
Bid document from different company indicate numerous last minute
adjustment such as use of erasers or other physical alteration.
A large difference between price of winning bid or other bid.
A certain supplier bid for particular contract is much higher than supplier
bid for another similar contract.
Only one bidder contact wholesaler for pricing information prior to bid
submission.
Supplier meet privately before submitting bid sometime in vincity of
location where bids are to be submitted.
11. S.No Case Factor which established
agreement for bid rigging
1. Re: LPG Cylinder Manufacturers Suo
Moto Case
Identical price quotations.
2. Foundation for common cause and
people awareness Vs PES Installation Pvt
Ltd and Ors + Gulshan Verma V. UOI and
Ors.
Commonality of mistake in tender form
3. Re: Aluminium Phosphide Tablet
Manufacturer Suo Moto Case
Identical bid price
Common entry in premises of FCI
before submission of bids.
4.
5.
Coal India Ltd Vs GOCL Hyderabad
and Ors.
Shri BP Khare, Principle Chief Engineer,
Southern Eastern Railway, Kolkata Vs
M/s Orrisa Concrete and Allied Industry
Ltd. And Ors
Collective boycott of e auction
Identical Prices
Controlling the supply of
explosives.
Identical Rates
Division of Quantity
Similar Handwriting
Format of covering letter
Tender fee payment
Past Conduct
12. 1.Coal India Limited v. GOCLHyderabad & Ors., Case No. 06 of 2010
An information was filed by M/s Coal India Ltd. against explosive
manufacturers/ suppliers in India along with their associations, for their alleged
anti-competitive acts.
In this case, the Commission found the acts and conduct by the opposite parties
therein of boycott of e-reverse auction together with their past conduct of
quoting identical rates and controlling the supply of explosives as sufficient to
establish that the same was done with a view to manipulate the process of
bidding in violation of section 3(3)(d) of the Act.
The Commission apart from issuing a cease and desist order imposed a penalty
upon each of the contravening party@ 3% of the average turnover of the
company.
However, COMPAT vide its common order dated 18.04.2013 passed in Appeal
No. 82 of 2012 and other connected appeals after considering the aggravating
and mitigating factors reduced the penalty to the extent of total of 10% penalty
imposed by the Commission
13. The commission has ordered suomoto investigation against the four public sector
general insurance companies, namely, National Insurance Co. Ltd., New India
Assurance Co. Ltd., Oriental Insurance Co. Ltd. and United India Insurance Co.
Ltd complaint alleging contravention of the provisions of section 3 of the Act. It
was alleged that these four insurance companies had formed a cartel for
increasing the premium for Rashtriya Swasthya Bima Yojna (RSBY) of Government
of Kerala.
After a detailed investigation by the DG, the Commission imposed a total penalty
of Rs. 671.05 crore on the said four public sector insurance companies for
manipulating the bidding process initiated by Government of Kerala for selecting
insurance service provider for RSBY.
It noted that the impugned conduct of these companies resulted in manipulation
of the bidding process in contravention of the provisions of section 3(1) read with
section 3(3) (d) of the Act.
Accordingly, it imposed penalties of Rs. 162.80 crore, Rs. 251.07 crore, Rs. 100.56
crore and Rs. 156.62 crore on National Insurance Co. Ltd., New India Assurance
Co. Ltd., Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.
respectively for the impugned conduct.
14. The Commonwealth Games 2010 have been subject to numerous charges of anti
competitive practices in its procurement process.
The CAG has estimated the cost of creating venues and city infrastructure as well
as the operational expense of hosting the Games at Rs. 12,888 crore.
There have been irregularities made by the Organizing Committee (OC) in the
procurement of various items for the CWG which include the hiring of treadmills
for 45 days for Rs. 9, 75,000 when such machines can be bought for Rs. 7 lakh.
There has been subversion of fair procurement practices on the following
grounds:
Tenders were awarded bypassing usual bidding norms.
In many cases there was no written contract, nor was there a tendering process.
There was no tendering made for the hiring of vehicles for example.
In some cases, the successful bidder was allowed to tamper with the figures post
auction
In the construction of flyovers, stadiums, lane strengthening and widening,
upgrading street light, power plants, sewage plants, water treatment plants and
bus parking lots, bidding norms were bypassed
15. Works have been awarded at higher rates despite which there have been poor
site management, delays and quality compromises
According to the CVC report, there has been scanning of sixteen Games
projects and there has been discovery of competition issues with one or more
of the scenarios manifesting themselves
a. Either open tender has not been floated.
b. Either bidders have colluded among themselves or both bidders and procurers
have colluded.
The Common Wealth Games Case shows, how unguarded procurement leads to
bad quality works and loss to exchequer. A competitive procurement process,
guided by rules and legislative framework not only provides good quality work
but also gives value for money.
Thus it may be inferred as learning from this case that procurement process
whether distorted by corruption or otherwise, they necessarily have
diminishing returns for money spent and competition brings increasing returns
for money spent in the procurement process.
16. The Commission is empowered to inquire into cases of anti-competitive
agreements and cartels :
• either on its own motion or
• on receipt of information or
• on reference made to it by the Central Government or State Govt. or statutory
authority
In case the Commission is convinced that prima facie case exists, it shall direct the
Director General to investigate and furnish report
POWERS OF THE COMMISSION
After the inquiry, the Commission may pass inter- alia any or all of the following orders under
section 27 of the Act:
direct the parties to discontinue and not to re enter such agreement
direct the enterprise concerned to modify the agreement
direct the enterprises concerned to abide by such other orders as the Commission
may pass and comply with the directions, including payment of costs, if any
pass such other orders or issue such directions as it may deem fit
17. After inquiry if contravention is established, the role of commission to avoid bid
rigging are
1. Enforcement:
Direct any enterprise or associations of enterprises or person or associations of
persons to discontinue and not to re-enter such agreement or discontinue abuse
of dominant position
Impose such penalty as it may deem fit not exceeding 10% of the average of the
turnover for the last three preceding financial years upon each of person or
enterprise
If any anti-competitive agreement was entered into by cartel, it may impose
upon each producer, seller, distributor, trader, or service a penalty of up to
three times of its profit for each year of the continuance of such agreement or
ten percent of its turnover for each year of the continuance of such agreement,
which ever is higher .
18. 2.Advocacy: Many competition authorities are also involved in advocacy efforts to
increase awareness of the risks of bid rigging in procurement tenders. There are many
examples of educational programs to this end. Some authorities have regular bid rigging
educational programs for procurement agencies; others organize ad hoc seminars and
training courses
These outreach programs have proved extremely useful for a number of
reasons:
They help competition and public procurement officials to develop closer
working relationships;
They help educate procurement officials about what they should look for in
order to detect bid-rigging through actual examples of bidding patterns and
conduct which may indicate that bid-rigging is occurring;
They train procurement officials to collect evidence that can be used to
prosecute better and more effectively bid rigging conduct;
They help educate public procurement officials and government investigators
about the cost of bid rigging on the government and ultimately on the
taxpayers; and
They warn procurement officials not to participate in bid rigging and other
illegal conduct which undermines competition in procurement tenders
19. During the pendency of an inquiry, the Commission, may by order,
temporarily restrain any party from carrying on acts prohibited under the
Indian Competition Act, until the conclusion of such inquiry or until further
orders, without giving notice to such party, where it deems it necessary .
The Indian Competition Act also empowers the Commission to grant
leniency by levying a lesser penalty on a member of the cartel who
provides full, true and vital information regarding the cartel. (Section 46)
The Competition Appellate Tribunal (COMPAT) is established under Section
53A to hear and dispose of appeals against any direction issued or decision
made or order passed by the Commission under specified sections of the
Act. An appeal has to be filed within 60 days of receipt of the order /
direction / decision of the Commission.
20. Full information about the market
Maximize participation of credible bidders – wider choice and to reduce
unreasonable requirements/conditions
Avoid ambiguous drafting of the specifications/terms of reference – avoid
bias or discrimination – focus on functional performance rather than
product description
Design of tender process : Avoid joint bids, subcontracting, repeated joint
interaction, imposing reserve price
Avoid non-compete clauses
Evaluation criteria : Technical and financial evaluation should be fair and
transparent
Innovative bidding models: e-auction – price transparency and avoid
corruption – Ascending clock auction (in discovery of price of 3G
spectrum)
21. Developing countries exhibit segmented product markets, discretionary
government regulations and considerable corruption, hence they tend not to have
a very competitive environment. There are considerable barriers to entry and exit,
and policies often favour large firms in access to finance and other measures.
There are numerous micro-enterprises, most sectors are dominated by a few firms,
providing scope for abuse of dominant position. Such abuse appears to be
widespread. Jenny (2006) lists the following for Africa alone:
Concentration in trade and (purchasing) price fixing agreements among traders –
coffee in Kenya, cotton, tea, tobacco in Malawi, fish processors and exporters in
the Lake Victoria region
Inflated prices for inputs, particularly chemical inputs – fertilizer tender cartel to
Kenyan Tea Development Authority
Banking services – concentrated in South Africa and Uganda
22. Chicken price fixing – Zambia
Milling cartelization – Malawi, Zimbabwe, Zambia.
Monopolies in foodstuffs- milk and sugar in Malawi
Soft drinks – acquisition of local bottlers by multinational firms results in high
structural concentration – Kenya (merger part allowed by Kenyan competition
authority). Anticompetitive vertical restraints – Kenya (quantity forcing, retail
price maintenance or suggested retail price), Zambia.
Retailing – South Africa.
Passenger Transport (buses, taxis, airlines etc.) – Matatu owners cartel in Kenya,
Taxis in Cape Town.
Oil company cartel-like behaviour in Kenya, Tanzania, Uganda, Zambia
(prosecutions for price fixing), Malawi, South Africa
Construction materials – Cement monopolies or cartels - Malawi, South Africa
(officially sanctioned cartel to 1996), Tanzania and Zambia.
Professional services – recommended Attorney fees - South Africa; health care
fees – South Africa; surveyors’ cartel – Zambia.
Insurance services – price fixing in Kenya.
23. The Commission rejected actor producer Ajay Devgn's allegation of abuse of dominant
position by Yash Raj Films (YRF) and held that there was no violation of Competition Act
in the case.
Ajay Devgn Films Pvt Ltd (ADF) had moved the Commission alleging that YRF was abusing
its dominant position by asking exhibitors to dedicate more screens to its upcoming
release, Shahrukh Khan-starrer 'Jab Tak Hai Jaan', affecting ADF's film 'Son of Sardaar‘
In the order, CCI observed, "The act of booking theatres by a distributor for its two films
simultaneously when the theatre owners have the liberty either to agree or not to agree
is not a restraint on the freedom of business of theatre owners. The theatre owners can
wait for other films and can refuse to book their theatres simultaneously for two films
CCI, while issuing restraint orders, had to keep in mind the overall exhibition market and
not a particular period of the market. No enterprise can be considered dominant on the
basis of just big name. Therefore, the claim of ADF that opposite parties were dominant
players in the relevant market of 'film industry in India' was not accepted.
ADF filed appeal in the Competition Appellate Tribunal (COMPAT) against the order of
CCI. The COMPAT also refused to stay the YRF's tie-up with single screen theatres across
the country for the release of its film 'Jab Tak Hai Jaan'. The COMPAT said, "Huge
economic interests are at stake for both the parties.
24. E-Procurement of stock items has been introduced in Indian Railways to the
extent of over 70 per cent.
Threshold limit for issue of open tenders has down in GFR, 2005. This has
increased the number of open tenders considerably thereby enhancing the
participation of new 22 entrants who would otherwise have been left out
because of higher threshold limit prescribed in GFR, 2005.
Government of India has started Indian Government Tender Information
System www. tenders.gov.in which details tenders floated by Central
government ministries/departments, PSUs, State governments, public sector
banks and other organisations separately for goods, services and works. It is a
major step towards increasing transparency and also to ensure that no
prospective bidder misses an opportunity to participate in the tenders.
25. Ensuring effective functioning of public procurement in markets is a part of
good governance. This necessitates addressing the challenge of promoting
effective competition among suppliers and preventing collusion amongst the
potential bidders.
The competition law explicitly prohibits collusion among the bidders which
ultimately affects the public exchequer and causes loss to public money.
Fair dealing in public procurement will not only help the procurer to get the
best deal but also help the country to use its resources effectively.
Reducing collusion in public procurement requires efficient regulatory
mechanism, strict enforcement of competition laws and awareness among
public procurement agencies at all levels towards the adverse impacts of
collusion.
To sum up, the policy planners, public procurement officials and CCI should
work together as a team to deter bid rigging through robust enforcement,
increased vigilance, and better designed public procurement programs.