Procurement management practices in the public sector in Bangladesh: A case study on IDCOL

Abstract

Procurement is the act of obtaining goods or services, typically for business purposes whereas public procurement involves acquisition through contracts of goods, works, or services required by governments. In Bangladesh, public procurement contributes directly to the development of our country. As a Government owned financial institution, IDCOL has been working to support the Government of Bangladesh (GoB) in meeting its national target and to attain significant progress of SDGs in Bangladesh using its intricate procurement process. It follows a certain plan and principles while being managed by an overviewing committee. Different kinds of procurement are done using approved selection methods for goods, works and non-consulting as well as consulting services. In terms of tenders, certain evaluation procedures are maintained. Still, IDCOL faces some risks in their procurement management system. For this, certain measures are taken to minimize the risks, such as, Project Procurement Strategy for Development (PPSD), creating a bid evaluation committee introducing STEP system, identification of Procurement Focal Persons (PFP) and other due-diligence measures. However, huge downsides have been seen in dealing with the risks. For example, selection of contractors, protection, liquidated damage, charge installment etc. Enough budget allocation, commitment of timely payment, committed performance from the suppliers, application of liquidity damage clause, submission of enough portion of documents with every tender and implementation of E-Procurement system etc. can be up brought to address these risks.