The cabinet committee on economic affairs has approved the amendment proposal to Public Procurement Act 2006, disallowing awarding works of many projects together to a single firm.
At a meeting yesterday, the cabinet also gave its consent to the proposed the Public Procurement Policy 2008 toughening rules of limited tendering method so that bidders are compelled to take up work at lower prices and do them properly.
Finance Minister AMA Muhith, chairman of the committee, presided over the meeting held at the cabinet division office. Planning ministry made both the proposals.
Earlier, prime minister directed officials not to give more than two projects to a single firm at the same time. She said if the firm completes its work in time, it can be given more works later.
The logic is that if a contractor is given a number of projects at a time, the works could be delayed and quality would be compromised.
The move to amend the PPA comes after several ministries and divisions including the Prime Minister’s Office, Local Government Division and Power Division called for inclusion of 38 provisions to the act.
The amendment proposal earlier argued that the volume of works and prices had changed much now than when the laws were enacted, so the law has to be modified in light of the change in circumstances.
Besides, under the draft public procurement rules, limited tendering is a method in which only the known or pre-qualified bidders are allowed to participate.
Tenders will not be advertised in newspapers to prevent its circulation among a large group of potential bidders.
As per the existing rules, works of up to Tk2 crore can be assigned under the limited tendering method. The meeting yesterday decided that this ceiling under the method would be raised to Tk3 crore.
Currently, the contractors cannot quote 5% more or less than the estimated price. The meeting decided to drop the clause in the amendments.