Planning Of Procurement o different goods and services

Planning Of Procurement

1. Planning Concept

2. Procurement Planning
Benefits:
➠Monitoring of all procurement activities
➠Identification of slippages
➠Timely intervention for corrective
measures
➠Realistic forecasting

3. Milestone Plan Generation
➠Define the final milestone
➠Develop intermediate milestones
➠Review balance and progress
➠Review dependencies and time relationships
➠Draw the diagram
➠Review the logic and clarity

4. Milestone Plan Diagram1/05 4/05
Feb-05Feb-05Feb-05Feb-05Mar-05Mar-05Mar-05Mar-05Apr-05Apr-05Apr-05
Feb-05
Start STD Preparation
Mar-05
Tender Opening
Mar-05
Tender Evaluation Apr-05
Delivery & Installation
Apr-05
Contract Completion
Mar-05
Approval of Award
Mar-05
Sign Contract
Feb-05
Advertise Tender

5. Critical Path Analysis
1
2
8 11 12 17
0
0
C
30
20
20
35
35
38
39
51
51
16
24
A
16
J
15
B
20
D
15
E
10
G
3
H
16
K
12

6. Package Design

7. Four Key Words
Item
A single article or unit in a list.
With an identified quantity ….. 1,2,3 etc
Lot
A number of similar generic type of items
grouped together
Any number of items can form a lot
Package
A group of similar type of lotsforming a
contract
No package can have more than4 lots
Contract
The purchase agreement.
Through which the package/lot is
purchased

8. PackagesContract
Lot
Item 1
15 x Computers
Item 4
2 x Servers
Item 2
6 x Printers
Item 5
1 x Network
Item 3
15 x UPS
Up to a total of
30 Items
Package Contract
Item 1
15 x Exec. Chair
Item 1
12 x Exec. Desks
Item 2
12 x Office Chair
Item 2
15 x Office Desks
Item 3
12 x Chair Typist
Package
Item 1
15 x Filing Cab.
Item 2
6 x Storage Cpb
Item 3
1 x Safe
Item 1
15 x Almira
Item 2
6 x Coat Stands
Item 3
14 x Magazine
Racks
Item 4
Notice Boards
Item 5
Miscellaenious
Lot
No.1
Lot
No.2
Lot
No.3
Lot
No.4
Lots can be grouped,
or
let as a series of
separate lots.

9. Three Initial Steps
1.Categorize procurement into:
2. Consider time scale and combine into contract
packages….. assign a unique Code Number
3.Make packages as large as practicable for
improved participation and competition.
Goods Works Services

10. Procurement
MethodsChoice of
Method for
Procurement
Goods and
/or Works
Services
Open Tendering
Method
OTM
Restricted Tendering
Method
RTM
Direct Procurement
Method
DPM
Two-stage Tendering
Method
TSTM
Request for Quotations
Method
RFQM
Request for Proposals
RFP
The Preferred Method
Other Methods must be justified
Goods Tk 10 lakh
Works Tk 25 lakh
Lowest of:
Additional Goods 15% or Tk 5 crore
Additional Works 15% or Tk 20 crore
New Works (repetition) 15% or Tk 20 crore
Additional Services 15% or Tk 2 crore
Maximum Goods Tk 15,000
Urgent Physical Services Tk 50,000
Large or complex projects
where alternatives may be
required
Max in Bangladesh Tk 2 lakh
Max Embassies Tk 5 lakh
Including - Maintenance of Equipment/Production
Plant/National Carriers whilst outside Bangladesh
See Chapter 8

11. Procurement Plan

12. PROCUREMENT PLAN
Forprocurementunderthedevelopmentbudget
aProcuringEntityshallalltheoutsetpreparea
ProcurementPlanfortheentireprojectperiod.
Thisplanshallbeupdatedonanannualbasis
andinarationalmannerhavingregardto
expectedflowoffunds)
TheProcurementPlanshallbeincorporatedinto
theDevelopmentProjectPerforma(DPP)ofthe
developmentproject.

13. Forprocurementundertherevenue
budgetaProcuringEntityshallpreparean
AnnualProcurementPlan.
PreparationofProcurementPlanis
mandatoryforallProcuringEntities.
TheHeadofaProcuringEntityoran
officerauthorisedbyhim/hershall
approvetheProcurementPlan.
TheProcuringEntityshallprepareall
ProcurementPlansinaformatissuedby
theCPTU.
PROCUREMENT PLAN (Contd.)

14. OnceaProcurementPlanhasbeenapproveditis
notpermittedtosplittheprocurementrequirement
(packages)intosuccessivesmallerpackagesof
lowervaluewiththeintentionofavoiding:a
particularprocurementmethod;orthenecessityof
seekingtheapprovalofhigherauthority.
Iftheestimatedtotalcostofasingleprocurement
objecthavingtwoormorelots(contracts)thatare
tobeprocuredissuchthatthetotalcostofthat
procurementobjectfallsundertheapproval
authorityoftheCabinetCommitteeonGovernment
Purchase(CCGP)undertheDelegationofFinancial
Powers,allthecontractsofthatprocurementobject,
irrespectiveofthevalueofeachlot(contract),shall
besubmittedtotheCCGPforapproval
PROCUREMENT PLAN (Contd.)

15. Total Procurement Plan for
Development Project/Programme
Identifies:
The packages for goods, works and services
that are required under the development
project/programme.
Each procurement package, giving it a unique
code and considers the expected cost of the
package (as per the DPP/TAPP), and
The anticipated dates when the procurement
package will be supplied.

16. Goods Total Procurement Plan

17. Annual Procurement Plan for
Development & Revenue Budgets
Time bound procurement
assists a Procuring Entity to
effectively plan its
procurement requirements
and is an important and
useful tool used to monitor
the progress of procurement
A. to ensure that it does
not go astray;
B. to ensure that early
problems with
slippage can be
dealt with
promptly; and
C. can form a useful
Annual Plan for
procurement.

18. Goods Annual Procurement Plan
Left hand side
Under Revenue Budget
‘GOB’

19. Goods Annual Procurement Plan
Right hand side
Alternate Budget heading
Revenue

20. &Do Not Forget!!!!