PPCC First Summary Monitoring Report

Compliance and Monitoring Report
For the Period February 1 June 30, 2006

In compliance with the ACT of 2005, the Public Procurement and Concessions Commission embarked on a comprehensive compliance and monitoring exercise of procuring entities. The objective of the exercise was:

  • To establish acquaintances with the participants in the procurement processes within each procuring entity,
  • To review, examine and analyze documents of procurement that were conducted during the recast budget period (February 1 June 30, 2006); not only to determine how well their practitioners understood and complied with provisions of the ACT, but
  • To identify the type and level of training needed by these procuring entities.

This monitoring exercise grouped all the procuring entities into three categories (large, medium and small spenders) based on the amount of their procurement budgets.

  • Large spenders are procuring entities with procurement budget of US$500,000 and above,
  • Medium spenders are procuring entities with procurement budget ranging from US$201,000 to $500,000 and
  • Small spenders are procuring entities with procurement budget of US$200,000 and below

As shown in the matrix attached, one third (1/3) of each category of procuring entities were monitored. A sample of 25% of their supporting documents examined, were for office and related equipment, furniture and consumables.

The inspection of the procurement documents revealed that most of the procurement staffs are aware of the Public Procurement and concessions Act. However, they need basic procurement training in all aspects; e.g. how to determine the methods of procurement and prepare:

  • The procurement plan
  • The request to bid, request for proposal and the request for quotation
  • The bidding documents for goods, works and services
  • The contract package award and administration, etc.

Analysis of the statistics from their supporting document showed that 90% of the procuring entities did not comply with the ACT of 2005 due to the lack of training coupled with the fact that the procedural manual, regulations and policy of the ACT has not yet been prepared. Hence, many of the procurement (80%) were not properly documented; having only one or two quotations instead of three quotations as stipulated in the ACT.

The sole-source method of procurement which eliminates competitions was over used by many of the entities. However, entities such as:

  • The Ministry of Health and Social Welfare,
  • Ministry of Agriculture,
  • National Port Authority, and
  • The Ministry of Planning and Economic Affairs

have higher compliance ratings due to their associations with donor agencies and their own procurement procedures that are similar to those provided in the ACT.

Notwithstanding, the need for training to enhance capacity is still there. The slow process in the training is due to the delayed confirmation of the commissioners, employment of the Executive Director and critical staff of the secretariat along with the bureaucracy in recruiting procurement specialists to help in the training process and the development of relevant policy and standard documents.

We are however pleased to announce that three procurement specialists have been identified (within the Sub-region) and are being recruited for eighteen months each to work with the PPCC in preparing the basic policies, regulations, procedures, etc. and assist in conducting all required procurement training and reports.