Public Procurement Procedure Sri Lanka is governed by a framework designed to ensure transparency, accountability, and efficiency in the use of public funds. The process typically follows a set of rules, regulations, and guidelines issued by various government bodies.
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Public Procurement Procedure Sri Lanka
1. Regulatory Framework
Sri Lanka’s public procurement process is primarily governed by:
- Procurement Guidelines (2006): Issued by the National Procurement Agency (NPA) to provide guidance on government procurement.
- Government Procurement Manual: Offers detailed procedures and instructions on procurement.
- Financial Regulations (FR): Administered by the Ministry of Finance, covering financial accountability, including procurement.
2. Key Institutions
- National Procurement Commission (NPC): The NPC ensures the development and implementation of sound procurement practices, monitors procurement processes, and ensures compliance with established procedures.
- Ministry of Finance: Responsible for overall financial oversight, including procurement.
- Procurement Committees: Institutions use three-tier committees (Technical Evaluation Committees, Procurement Committees, and Project Committees) depending on the value of the procurement.
3. Public Procurement Procedure Process
a. Procurement Planning
- Need Identification: The first step involves identifying the need for goods, services, or works. This could be for infrastructure development, service contracts, or routine supplies.
- Budget Allocation: The relevant institution must ensure that funds are available for procurement before proceeding.
- Preparation of Procurement Plan: An annual procurement plan is prepared by government entities based on their needs and budgetary allocations.
b. Tendering Process
- Tender Documentation: After identifying the need and allocating a budget, the next step is to prepare tender documents that include the scope of work, specifications, and evaluation criteria.
- Invitation to Bids: Procurement entities may issue a public advertisement for bids through newspapers, government websites, or international tenders depending on the project’s value.
- Open Bidding (International or National): For larger projects.
- Limited Bidding: Restricted to specific suppliers.
- Shopping: Used for small-value procurement.
- Submission of Bids: Interested suppliers submit their bids by the stipulated deadline.
c. Bid Evaluation
- Technical Evaluation Committee (TEC): The TEC evaluates bids based on technical, financial, and other relevant criteria.
- Price Comparison: The financial evaluation compares the bid prices to ensure competitiveness.
- Compliance with Requirements: The committee checks for conformity with the tender’s terms and conditions.
- Bid Evaluation Report: A report is submitted with recommendations on the most suitable bid.
d. Award of Contract
- Procurement Committee Approval: Based on the evaluation, the Procurement Committee recommends the bid to the appropriate authority for final approval.
- Letter of Award: The selected bidder receives a formal Letter of Award, followed by a contract negotiation and signing.
e. Contract Implementation and Management
- Execution of Contract: The supplier begins providing the goods or services as per the terms of the contract.
- Supervision and Monitoring: The procuring entity supervises the contract to ensure compliance with terms and timely delivery.
- Payment: Payments are made according to the terms of the contract, subject to successful delivery or completion.
4. Public Procurement Procedure Methods
- Open Competitive Bidding: The most commonly used method for high-value procurements.
- Limited Competitive Bidding: For procurement limited to pre-qualified suppliers.
- Direct Contracting: Used in specific cases like emergencies or proprietary goods.
- Shopping/Quotation Method: For smaller procurements or routine purchases.
5. Transparency and Accountability
Sri Lanka’s public procurement process includes mechanisms for transparency, such as:
- Public Disclosure: Tender notices, bid evaluations, and awards are made public to enhance transparency.
- Appeals Process: Suppliers can challenge procurement decisions through the NPC or other appeal mechanisms.
6. E-Procurement
Sri Lanka has initiated the process of introducing e-procurement, which aims to streamline and automate the procurement process, increasing transparency and reducing delays.
Challenges in Public Procurement in Sri Lanka
- Delays: Bureaucratic processes sometimes slow down procurement timelines.
- Corruption: There have been issues related to procurement fraud or corruption, despite efforts to ensure transparency.
- Capacity Building: Need for improving the capacity of procurement professionals and implementing modern procurement practices.
The public procurement procedure in Sri Lanka is thus a detailed and regulated process designed to ensure that public funds are used effectively for national development, with oversight to prevent malpractices.