Infusing value for money (VfM) into the public procurement system in botswana

2017 ◽  
Vol 17 (3) ◽  
pp. 281-341
Author(s):  
Emmanuel Botlhale

Public procurement accounts for a big proportion of public budget outlays, hence, it is important that there be demonstrated Value for Money (VfM) in public purchases. To ensure VfM in public procurement, Botswana introduced a modern public procurement system in early 2001. The system is yet to be subjected to VfM analysis. Using document analysis, this paper explores two main research questions: (i) what are key public procurement challenges in Botswana?; and (ii) how can public procurement in Botswana be improved? It is concluded that the public procurement system in Botswana is not constructed on a VfM basis. It is consequently suggested that there is a need for public procurement reforms and the adoption of various private sector continuous improvement tools such as Lean, Kaizen and Six Sigma.

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Daniel Etse ◽  
Michael Sakyi Boateng

There is a scarcity of literature on the effects of Ghanas public procurement act on the acquisition of academic library resources. This study therefore sought to address this knowledge gap. A survey approach was adopted for conducting this study and questionnaire was used to collect data. Descriptive statistics was used to analyze data, and findings were presented using tables. Findings suggest that the implementation of the Public Procurement Act has enhanced the procurement structure of academic libraries in Ghana. Effects of the Act were however found to be weak with regards to development of capacity of procurement personnel, dealing with issues of transparency and accountability, and achieving value for money. It was recommended that the Public Procurement Act and the procurement system should be revised and strengthened, and training and development be improved and should target the attitude and morality of the procurement personnel.


Author(s):  
Omekwe, Sunday Omiekuma

Economic development may be achievable through efficient and effective allocation of resources. In same vein, effective and cost effective resource allocation can only be powered by an equally ‘effective and transparent’ procurement process or system. Accordingly, the PUBLIC PROCUREMENT ACT 2007, was established to among other reasons, midwife an effective procurement system for the country that will ensure value for money for resource allocation. Annual capital expenditure provision in national budgets for the last five years had averaged about 24.7%. Records available from the Bureau of Public Procurement (midwife of the Act) indicated that the South-South geo-political zone did enjoy (probably not commensurate with her resource contributions) part of these national budgetary allocations. Analysis of same records, unfortunately showed that the intent to achieving value creation and development in the area could not have been achieved, for many reasons including, inadequate provisions and allocations, poor conception/implementation/execution, inadequate monitoring for the referenced restive region. Given the findings above, it is therefore suggested amongst others that there should be establishment of strong and compelling institutions, amidst the pervading corruption that has become Nigeria socio-cultural value. Also, there should be domestication of public procurement law by all the 36 states and the entire 774 local governments in Nigeria. All these will contribute towards an effective creation of ‘value for money’ in resource allocation for desired regional economic development.


2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.


Author(s):  
Yernur Mukhtar ◽  
Yuri Toluev

The relevance of this research topic lies in the fact that public procurement requires in-depth consideration and comprehensive analysis, including the scientific and methodological level of analysis. The use of special legal documents in public procurement and the specific procedure for the execution of these documents is not a factor in the full understanding of this direction, including the economic assessment of the entire process. An economic and statistical approach using system analysis is required, which was used by the authors of the scientific article as the proposed research methodology. One of the main parts of the progressive process of commodity exchange in the economies of the analyzed countries is the mechanism for building public procurement. Currently, the problem of material and technical support of public needs in developed countries is solved as a result of logistics processes in the system of public procurement through the acquisition and supply of goods, works, and services, tangible and intangible resources. The article submits a review of foreign experience in building a public procurement system with special features characteristic of this region of the world, presented as an object of research. Country aspects in the object under study and allowed the authors to formulate the relevant main results and conclusions concerning various parties in the public procurement system, which determined the further strategy to improve the procurement system of the government and international integration union. Key words: public procurement (PP), regulation of the public procurement system, government orders, entrepreneurship, international regional institutions, regulation of the public procurement system, procurement, USA, European Union (EU), Poland, Germany, World Bank.


Author(s):  
Ahmed Alofi ◽  
Yasir Alhammadi ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan

Saudi Arabia has had many issues in delivering mega construction projects, such as delays, high costs, and low customer satisfaction. Some studies show that around 70% of public projects in Saudi Arabia are delayed. One factor that might be causing these performance issues is the traditional low bid contracting system in Saudi Arabia, or the Saudi procurement system. In Saudi Arabia, owners select contractors based only upon the lowest price. This paper researched ways to modify the current Saudi procurement system and show quick and simple modifications that can be done to improve the low performance. This research proposes that by adding the clarification phase from the Performance Information Procurement System (PIPS) to the Saudi traditional procurement process could greatly improve construction performance. The clarification phase requires the selected contractor to submit a project scope, detailed and milestone schedule, potential risks that they do not control, and performance measurement before a contract is awarded. The PIPS system is one of the most successful systems around the world, which shows success rate of 98% in six different countries with risk and cost reduction up to 30%. The clarification phase has been identified as the most important step in the PIPS to ensuring a successful project. This paper conducted a survey among construction professionals in Saudi Arabia, including 157 engineers, 33 consultants 9 owners, 5 vendors, 13 academics, and 28 architects, in order to develop the public procurement system in Saudi Arabia. The participants work in government sectors with an interest in the Saudi Arabian procurement system. The survey confirmed that professionals in the Saudi construction industry believe that the procurement system should be changed and that the inclusion of the clarification phase to the procurement system is a way to improve the procurement system.


Author(s):  
Simeon Wanyama

This chapter is about corrupt practices in the public procurement cycle. Taking the example of Uganda, it identifies what takes place at each of the stages of public procurement and examines the perspectives of stakeholders regarding alleged corruption, misappropriation, and fraudulent practices during the public procurement process. It also reviews the governance systems that have been put in place to try and stem out these malpractices and ensure proper governance in the administration of public procurement. The research followed a qualitative approach aimed at getting the views of stakeholders and understanding whether what is in place is adhering to the principles of public procurement which foster good governance and value for money. The findings of the study indicate that the perception of the majority of the respondents is that corruption is pervasive in public procurement in Uganda despite good laws, regulations, and guidelines that have been put in place and that it manifests itself at all the stages of public procurement.


2019 ◽  
Vol 110 ◽  
pp. 02090 ◽  
Author(s):  
Elena Karanina ◽  
Ksenia Kartavyh

Every year, the volumes of funding in the sphere of provision of state and municipal demand increases significantly. Achieving the effectiveness of government contracts is one of the main and “eternal” problems of public funds management. For public procurement to be effective, it is necessary to meet the needs of the relevant actors, i.e. society, the state, and the private sector. In order to make a qualitative forecast of the results of public procurement placement, the development and implementation of measures aimed at improving the public procurement system, it is necessary to assess the current situation of manifestation of risks arising from the procurement of goods, works and services for state and municipal needs. For this purpose, a risk-based model for assessing the system of state and municipal procurement has been developed, which allows disclosing the nature of the risks of the procurement cycle fully and identifying a case scenario for choosing a way to loss minimization.


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