Advancement in Reforming
the Procurement Law
Update and Key Features

Office of the Minister of State
for Administrative R...
Outline
Reform & Development
Public Procurement Reform Agenda
Constraints & Goals
Public Procurement Today
Critiques
Curre...
Reform & Development
OMSAR has prepared an administrative reform
strategy that focuses on the core functions of a
modern s...
Procurement Reform Agenda                       1/2


Good governance is a prerequisite for investment
and economic growth...
Procurement Reform Agenda                   2/2

 “This law will provide for a more efficient use
 of public funds while e...
Public Procurement Goal
Public Procurement is the whole process of acquisition
by the public sector of services, supplies,...
Constraints versus Goals
               LOW                      HIGH


                                               HIG...
Public Procurement today




        14969
Legal Documents
   19
           1924
        1942

          1959

  1959

1966

2002
Legal Documents
   19                             1999
           1959

  1959

         1942

           1924

1966
2002 ...
Critiques of Current Legislation
Outdated
Various discretionary            Entities

exceptions to the general rule   Bidd...
Critiques of Current Legislation
No smooth appeal mechanism
Inadequate Evaluation Criteria
Inconsistent Implementation Pro...
Major Concerns in Reform
Capabilities of the procuring entity which impact:
      Degree and span of centralization
      ...
Ongoing Reform Initiative
Scope
    Public Procurement Law (                   ) to amend
    mainly the respective provis...
Ongoing Reform Initiative
Magnitude
    New laws + set of decrees rather than add-on law and
    decrees
    Cover the who...
Key Achievements in 2006-07
Inter-Ministerial Committee: representatives from
PCM, CDR, COA, MoF, MoPW&T, and OMSAR
Progre...
Key Achievements in 2006-07
E-Procurement – OMSAR
– Development Gateway Foundation Grant (Italy)
– Pilot e-procurement pro...
Relevant Initiatives
1999 draft law – IDF grant
2001 draft law – national
2007 draft law - national
2006 draft GCC & SCC
2...
A FINAL WORD

OMSAR
www.omsar.gov.lb
www.studies.gov.lb
www.e-gateway.gov.lb
www.informs.gov.lb   OR   dial 1700
THANK YOU


ysaad@omsar.gov.lb
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Advancement in Reforming the Procurement Law- Update and Key ...

  1. 1. Advancement in Reforming the Procurement Law Update and Key Features Office of the Minister of State for Administrative Reform Youssef Saad, Senior Procurement Officer / Team Leader 19th April 2007
  2. 2. Outline Reform & Development Public Procurement Reform Agenda Constraints & Goals Public Procurement Today Critiques Current Reform Initiative Key Recent Achievements
  3. 3. Reform & Development OMSAR has prepared an administrative reform strategy that focuses on the core functions of a modern state: – develop and establish modern management capacity in key administrations; – reduce the size and cost of the public administration through streamlining its overall organizational structure and functions; – modernize legislation especially that related to public procurement and accounting; and – promote a citizen-oriented administration through simplification of procedures and advancing e- Government.
  4. 4. Procurement Reform Agenda 1/2 Good governance is a prerequisite for investment and economic growth. Management of public purchasing & its legislation influence the economy as well as national & foreign investments. “Since the risk of corruption is perceived to be prevalent mainly in large infrastructure projects and public procurement more generally, the government intends to expedite the completion of the new procurement law with the related decrees and implementation tools to be effectively deployed by mid-2007.”
  5. 5. Procurement Reform Agenda 2/2 “This law will provide for a more efficient use of public funds while enhancing transparency in accordance with international business standards. “On a parallel and related track, establishing a regulatory body for maintaining, monitoring and updating the public procurement system will also be on the agenda. “In addition, the role of the Court of Accounts as an ex-post agency will be revived to ensure that all budgetary spending is in accordance with budgetary allocations.”
  6. 6. Public Procurement Goal Public Procurement is the whole process of acquisition by the public sector of services, supplies, works, etc… Objectives of Procurement Law are to – Protect/Optimize public expenditure and – provide for a framework that permits more efficient use of public funds while enhancing transparency Objectives of Public Procurement are to: – Meet user requirements – Achieve value for money – Protect the entity’s best interest technically and financially within set constraints. Which comes first in procurement legislation: integrity prerogatives or socio-economic prerogatives? Need to differentiate between Goals and Constraints.
  7. 7. Constraints versus Goals LOW HIGH HIGH SATISFACTION Rules vs. discretion CONSTRAINT Efficiency & Effectiveness LOW GOAL ACHIEVEMENT
  8. 8. Public Procurement today 14969
  9. 9. Legal Documents 19 1924 1942 1959 1959 1966 2002
  10. 10. Legal Documents 19 1999 1959 1959 1942 1924 1966 2002 2006
  11. 11. Critiques of Current Legislation Outdated Various discretionary Entities exceptions to the general rule Bidding Procedures No Publication of Awards Two-Envelope system No novel bidding procedures Absence of standard bidding documents Absence of Comprehensive Guidelines
  12. 12. Critiques of Current Legislation No smooth appeal mechanism Inadequate Evaluation Criteria Inconsistent Implementation Procedures Deficiency in capacities Centralization
  13. 13. Major Concerns in Reform Capabilities of the procuring entity which impact: Degree and span of centralization Thresholds Rules versus discretionary decisions Modernizing and Improving procurement frameworks on both technical and ethical fronts Capacity & readiness of both public and private sectors Best Practices & roadmap Compromising between the market driven competition approaches and the specificity of some sectors or circumstances (defense, health, social services, local development, crisis situations, etc…) Catering for market access and multilateral agreements (WTO, EU Accession, etc…) vis-à-vis non-economic social goals Modality of provision of some public services (privatization, BOT, BOOT, etc…)
  14. 14. Ongoing Reform Initiative Scope Public Procurement Law ( ) to amend mainly the respective provisions of ( ) Public Procurement Management Law ( ) to amend the respective provisions of ( ) Objectives of Reform Increase effectiveness of the law Increase efficiency of the procurement processes Key Tactics Consolidation Adaptation & Modernisation Simplification & Unification/Clarification of procedures
  15. 15. Ongoing Reform Initiative Magnitude New laws + set of decrees rather than add-on law and decrees Cover the whole legal and institutional framework in depth with specific details that will follow in implementing decrees Inclusions Procurement of Services, Supplies and Works Management of public facilities, lease, etc… BOT and other similar arrangements Exclusions Key issues to be addressed in decrees (e.g. thresholds) Implementation mechanisms for use of technological modernization (e.g. e-procurement, e-signature)
  16. 16. Key Achievements in 2006-07 Inter-Ministerial Committee: representatives from PCM, CDR, COA, MoF, MoPW&T, and OMSAR Progress was achieved on several fronts. Some issues that have been analyzed or are currently under discussion include: – Suitable reference procurement frameworks – Degree of centralization – Modes of procurement vis-à-vis thresholds and special situations – Tendering, evaluation, contracting and contract management methodologies and techniques – Scope of law versus subsequent decrees – Appeal Mechanism
  17. 17. Key Achievements in 2006-07 E-Procurement – OMSAR – Development Gateway Foundation Grant (Italy) – Pilot e-procurement project in 5 entities – Applied to goods/supplies procured from within the current framework with recommendations for enhancement – Entities are Ministry of Finance Ministry of Public Works & Transport Ministry of Economy & Trade Ministry of Education & Higher Education Ministry of Industry Department of Tenders - CI
  18. 18. Relevant Initiatives 1999 draft law – IDF grant 2001 draft law – national 2007 draft law - national 2006 draft GCC & SCC 2006 approval by CoM of the UN convention combating corruption 2005-2007 committees on e-signature, e-commerce etc….
  19. 19. A FINAL WORD OMSAR www.omsar.gov.lb www.studies.gov.lb www.e-gateway.gov.lb www.informs.gov.lb OR dial 1700
  20. 20. THANK YOU ysaad@omsar.gov.lb

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