Parliament saw a bill tabled Sunday for amendments to the public procurement rules that includes disqualification of contractors if they quote more than 5 percent above or below the government's estimated costs for a domestic purchase of up to Tk 2 core.

Experts say contractors in many cases quote rates up to 30 percent less than government estimates to secure a lucrative public sector contract through the lowest bid.

This is considered one of the main causes of poor standard of works and services in the public sector.

The new bill also allows new and inexperienced firms to compete in tenders up to Tk 2 core.

Also, according to the proposed bill, government departments will have no obligation to give local firms advantage for international procurements.

Planning minister AK Khandker tabled the bill Sunday, which was sent to the parliamentary standing committee on planning ministry.

The standing committee was asked to examine the bill within two days and refer it back to the House for passage.

The bill proposes amendments to seven sections of the Public Procurement Act 2006.

"The bill is aimed at ensuring transparency and accountability in public procurements. In addition, it will guarantee equal chances for all contesting entities," Khandker told parliament defending the bill.

"Previous work experience of competitors will not be necessary, according to the new rules," he said in the statement on the bill.

"In accordance with the new bill, the government will have no mandatory guidelines to prefer local companies for an international procurement," said Khandker.

Some of the amended sections of the draft bill go against the recommendations of the parliamentary standing committee on communications.

The standing committee in its recommendations urged the government to amend the Public Procurement Act giving local firms a 7.5 percent cost advantage in competitive tenders.

But, the planning minister said companies proposing more than five percent above or below the government estimate for a domestic purchase of up to Tk 2 crore will automatically be disqualified to compete.

Parliament secretariat sources say the bill is likely to be passed in the current session of parliament.

Source: bdnews24.com

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