| dc.description.abstract | The Public Procurement Act, 2006 (PPA 2006) stands as the exclusive formal act governing public procurement practices within Bangladesh. PPA 2006 is not 'exclusive' act relevant for procurement, although it is the most relevant act. Other acts like Contract Act 1872, Arbitration Act 2001 etc. are also applicable for any procurement. Under PPA 2006, 'procurement' is characterized as "the process of purchasing or hiring goods, acquiring goods via purchase and hire, and carrying out works and services through various contractual methods."
Given that Bangladesh's transport infrastructures are managed by the Government, but the vehicles used for transport are mostly owned by the private owners. Procurement within this sector can be broadly described as "the process of purchasing, hiring, or acquiring goods, works, or services by the transport division through various contractual methods."
Procurement in the transportation sector encompasses a wide array of items, from basic goods and services like construction materials and cleaning services to extensive infrastructure projects. These include the development of road and rail infrastructure, procurement of road or track maintenance equipment, and various consulting services.
Procurement within the transport division widely differs from that within the private segment. The reason for procurement within the private division is fundamentally direct, wherein the public division is complex, because it considers the financial improvement and welfare of the country, instead of only the commercial benefits. Moreover, unlike other private sector procurement, transport division procurement must address the contemplations of integrity, accountability, and national intrigued since this segment deals with the common people's money within the nation.
Sustainable procurement aligns with the tenets of sustainable development, which include ensuring a strong, healthy, and fair society for everyone, operating within environmental boundaries, and fostering effective governance. This procurement approach integrates considerations of economic, social, and environmental sustainability into the decision-making process for all purchases. This thesis includes an analysis of procurement processes in two transportation sector organizations, RHD and BR, to assess the potential for sustainable procurement. The current procurement framework in the transport sector, while containing some provisions in the Public Procurement Rules, 2008 (PPR 2008) and Standard Tender Documents (STDs) that address sustainability concerns, is found to be insufficient for fully integrating sustainability into the procurement practices of the transport division.
The examination of sustainable procurement practices in RHD and BR involved a comprehensive review of various documents, articles, public procurement rules and regulations, materials from the Central Procurement Technical Unit (CPTU), Roads and Highways Department (RHD), and Bangladesh Railway (BR). This was supplemented by interviews with key procurement professionals in these divisions and surveys conducted with various procurement officers from RHD and BR. These investigations focused on three primary aspects: economic, environmental, and social/ethical elements of sustainable procurement. The analysis reveals that while there are instances of sustainability practices being implemented, these are not extensively prevalent throughout Bangladesh's transport sector as a whole.
The current tendering system in Bangladesh predominantly focuses on the lowest bid price, which remains the principal factor in selecting suppliers or contractors. Whole life costing is rarely applied in project procurements. The criteria set out in tender documents do not sufficiently enable local firms to engage effectively in local bidding processes. In terms of environmental policy, the transport sector either follows government guidelines, those of funding agencies, or a combination of both. Ecolabels are not a consideration during the procurement of goods or services. Environmental criteria, such as Environmental Impact Assessments (EIA), are sometimes used in large contract procurements. However, the existing procurement system in the transport sector offers limited scope to ensure the environmental compliance of suppliers or contractors. There is also a lack of mechanisms to enforce adherence to minimum environmental legal standards. Conversely, the procurement framework generally ensures equal opportunity for all bidders and includes practices like ethical labor standards, encouraging female labor participation, and the prohibition of child labor. It is essential to integrate sustainability criteria into the tendering framework of any organization. Enhancing knowledge and awareness among individual procurement professionals is critically important for making informed and sustainable procurement decisions.
A definitive commitment from top management is crucial, and this dedication should be communicated to all individuals engaged in procurement or purchasing functions within the organization. Consequently, it's imperative to develop a sustainable procurement policy and align the organization's procurement framework with this policy.
Finally, there is a significant opportunity for further research on sustainability and procurement issues. In-depth studies should be conducted to gain a more comprehensive understanding of how sustainability relates to procurement in the transportation sector of Bangladesh. | en_US |
