Public Procurement Regulatory Authority is an autonomous body endowed with the
responsibility of prescribing regulations and procedures for public
procurements by Federal Government owned public sector organizations with a
view to improve governance, management, transparency, accountability and
quality of public procurement of goods, works and services. It is also endowed
with the responsibility of monitoring procurement by public sector
agencies/organizations and has been delegated necessary powers under the
Public Procurement Regulatory Authority Ordinance 2002.
Nations in the world have revolutionized their economies through e-procurement
systems. Over time a strong need has been felt dearly in the Government arena
to develop an e-Procurement system for Pakistan to achieve economies of scale,
transparency, economy, quality and efficiency in public procurements. The
growth of Public and Private sector are equally important for a stable
economy. Their need to be on the same page revitalizes the essence of e-GP
E-Procurement is the purchase of goods, works and services
electronically and is an integral part of an overall strategic procurement
plan in the current business environment. The plan includes, but is not
limited to strategic sourcing or supplier rationalization, automation of the
manual procurement system, and participation in one or more market-places.
The focus is on streamlining of business processes along with
building a digitized product catalogs and automating the RFQ -based purchase
processes while providing integration with the ERP/SCM systems. It is
estimated that the cost of placing a purchase order will plummet drastically
and the increased choice and flexibility will make for higher levels of
profitability, wider competition, transparency, economy and efficiency in
To support the development, implementation and operation of
e-procurement systems, governments have undertaken several different business
approaches; from complete in house solution to various types of third party
partnerships. Each implementation has its own set of benefits and business
issues associated with it, which directly affect both the government and the
suppliers doing business with the government.
Implementation of an e-procurement programme is more than a
technical project, and the business model, approach and practices applied may
have more of an affect on the success and integrity and the e-GP system than
the technical features of the application itself. A careful analysis of the
study undertaken by World Bank, to examine business approaches and practices
used by the governments around the world for the execution and operation of
e-procurement system, reveal the following common business approaches: -
Services – A third-party
e-procurement service that is fully managed, owned and operated by the
third party and used by one or more governments and their suppliers.
Private Partnership (PPP) – A
government e-procurement solution that is managed, owned and operated by a
third-party service provider, often wit the intent to transfer the
platform back to the government in the future.
Owned and Operated – A
government developed and operated e-procurement solution that may or may
not have been delivered by third-party partners.
Managed Service – A
government managed e-procurement solution that is operated and owned by a
The above choices of business models are associated with the
amount of risk and cost a government organization is willing to undertake when
implementing its e-Government Procurement Programme. The systems also contain
important information for monitoring and auditing government purchases,
confidential information of venders, procurement initiatives, responses to
bids and payment information. It is important to note that e-procurement
systems fundamentally provide a service to support the exchange information
and therefore remain independent of the procurement process itself. A certain
level of security is required in order to ensure the integrity, transparency
and privacy of the e-procurement system, but actual procurement process is
protected by the Procuring Agency.
e-G implementation Strategy
PPRA has developed e-GP
implementation strategy which is sensitive to all of the elements that
distinguish one jurisdiction from another including PPRA’ management, PPRA
Ordinance, PP-Rules 2004, PP- Regulations 2008, PPRA Guidelines,
Infrastructure and web services, SBDs and Private Sector viz a viz Government
Sector active participation. Accordingly an e-GP implementation strategy, like
any reform strategy, has been developed, customized and owned by each
deliver the maximum output, “E-Procurement system PPRA” strategy will
address the following
key areas which will strengthen the procurement reform
Political and executive leadership and authority
Management procedures, regulations and legislation.
Broad stakeholder involvement.
E-GP Implementation Strategy:
its inception, is balancing the interest of the stake holders both within and
outside government which is an essence of a Regulatory Authority. The vision of
“E-Procurement system PPRA” is to provide a level playing field for
stakeholders, achieve economies of scale through automation of the manual
procurement process thereby ensuring transparency, economy, efficiency, value
for money and quality in public procurements. “E-Procurement system PPRA”
will be one of its own kinds in Pakistan with in the Government arena which
cater all the e-procurements related to public funds. The proximity of
“E-Procurement system PPRA” demands proper phased implementation, and sound
planning. Considering the scarce resources, Government and political setup,
vision of management, local and international market scenario, timeline and
stakeholders’ interest, the implementation of “E-Procurement system PPRA”
has been divided into four phases.
E-Tendering includes Information services related Tender uploads, Procuring
Agency registration, and E-Tender forms. Phase 1 has been launched. A
unique user name and password is assigned to procuring agencies upon request.
Tenders are uploaded by the Procuring agencies after logging into the system. Under
Rule 12 of Public Procurement Rules 2004, it is mandatory for procuring agencies
to advertise the procurements over one hundred thousand rupees on PPRA website.
The monitoring of tendering
through by PPRA website is a continuous process and it is one of the major
objectives of PPRA to enhance awareness about PPR Rules through monitoring &
evaluation and National Institute of Procurement (NIP) training programs and
hence minimize violations made by procuring agencies. The IT wing of PPRA
indicates the violations of PP Rules made by procuring agencies in the tenders
uploaded on the Authority’s website, print media and sent through surface
mail, fax. The process of monitoring enables the procuring agencies to remove
the violations in future tendering. It is heartening to note that with the
passage of time over the period of 4-5 years, the violations done by procuring
agencies have significantly reduced i.e. 95% in 2004-05 to 20% in 2009-10
E-Tendering (Document downloads, SBDs / Contract Forms)
is in the initial implementation phase. Second edition containing the Public
Procurement Ordinance 2002, PP-Rules 2004, PP-Regulations 2008 and PPRA
Guidelines has been uploaded on Authority’s website for the convenience
stakeholders for their ready reference. Updated SRO’s, manuals, publications
and related forms are also available to balance the interest of the Supplier as
well as the Procuring Agency. Standard Bidding Documents (SBDs) / Contract forms
will be uploaded shortly. As per Rule 7 of PP- Rules 2004, procurement exceeding
the prescribed financial limit shall be subject to an integrity pact, as
specified by the Federal Government between the procuring Agency and the
Supplier or Contractor. The detail of the procuring agencies engaged in
integrity pact has also been uploaded on Authorities website which can be
downloaded free of cost.
system has been put in place considering the demand of stakeholders which will
bridge the gap between Procuring Agency viz a viz Supplier and PPRA being the
is in the development stage. Suppliers will get registered on the
“E-Procurement system of PPRA”. A unique user name and password will be
assigned to each supplier upon request. The supplier will bid against a specific
tender after logging into the system. The suppliers will be categorized into
goods, works and services (including consulting services). Considering the
history, background, financial condition and relevant registration with an
appropriate forum / body, the suppliers will be further categorized into Cat A,
Cat B, Cat C and even in the category of black listed suppliers if a supplier
fails to meet quality or found in litigation. This awareness will save a lot of
time of the procuring agencies thereby making the procurement process hassle
free and effective.
(a) involves online bid
submission, Security / Encryption/ Decryption, Bid upload and online work flow.
Suppliers will submit bids online thereafter they will be uploaded and Encrypted
using advance security system (security services can be hired from a third
party) the same will be decrypted after bid maturity i.e. date of bid opening.
Phase 4 b
shall cater the bid Processing / evaluation and finally Bid evaluation results
shall be uploaded. In the absence of “E-Procurement system PPRA” bid
evaluation results are being uploaded on PPRA web portal www.ppra.org.pk
for the convenience of stakeholders.
framework for procurement of goods, works and services is already available in
the form of PPRA Ordinance 2002, Public Procurement Rules 2004, Public
Procurement Regulations 2008 and PPRA guidelines.
PPRA with the approval of
its Board levied a nominal fee of Rs.1000/- for uploading of each tender on its
website and offered capacity building training on PP Rules & Procedures, @
Rs.1500/- per participant to Government and Private Sector officials from
December 2009 as a first step towards financial autonomy.
Since PPRA web portal www.ppra.org.pk
has already been launched for the advertisement of tenders hence it is ready to
be taken to the next level in the form of “e-Procurement system PPRA”.
Therefore, government owned and operated model best suits for this job which
will be in the parameters of available resources of PPRA and Government of
System will be self funding through user fees in the form of
annual subscription of each procuring agency and the supplier.
Basis of contract with service provider:
Inter government to government contract.
Cost to government:
Can be funded through inter government service fees.
Cost time to implement:
The current system is in the evolving phase since initial launch
starting with a simple web portal for the advertisement of tenders.
Resources supporting operations:
Currently PPRA has 11 officers to support the operation,
management and on-going development of the system and support activities.
No. of users submitting online tenders:
Number of procuring agencies:
No. of approx. venders visiting the website:
More than 5000 per month
Security of important data.
Manual procurement system or e-GP? Paradigm shift feasibility.
Limited number of IT Professionals for development and management of e-GP
e-GP standards / benchmarks
Standard bidding documents of goods, works and services
The quality procurements
related to Goods, Works and Services to ensure transparency, economy, efficiency
and value for money require standard bidding documents which should serve as
‘benchmarks’ for relevant procurement. Over a time PPRA had taken up this
uphill task since its inception and has developed Standard Bidding Documents of
Goods, Works and Services for the convenience of Procuring Agencies (PAs) as
well as Suppliers. It is envisioned that Standard Bidding documents of Goods,
Works and Service will ensure and facilitate compliance of Public Procurement
Rules 2004 and would help to remove unnecessary bottlenecks in the procurement
Phase-II entails document
downloads, standard bidding documents and Contract forms on PPRA website www.ppra.org.pk
which is a crucial phase of E-Procurement system of PPRA. The Procuring Agencies
as well as the Suppliers can download the required standard bidding documents in
real time by logging into a secure system. Every effort has been made to make
the system reliable, secure and efficient through effective searching
techniques. PPRA vide S.R.O 805(I)/2008 has adopted Pakistan Engineering Council
(PEC) Bidding documents for Works constituted under the Pakistan Engineering
Council Act, 1975 (V of 1976). PPRA has developed tentative model SOPs, SBDs and contract forms which will help in the design phase for implementation of eprocurment system and will require formal approval of the Federal Govt. before implementation of this proposed e procuement system of PPRA..
Following Contract Forms and Standard Procurement Forms (SPFs) related to Goods,
Works and Services are available for the general awareness of Suppliers as well as
Procuring Agencies (PAs).