Report On Procurement Risk of SPARRSO and its mitigation approach

Abstract

Bangladesh Space Research and Remote Sensing Organization (SPARRSO), operating under the Ministry of Defense, plays a pivotal role in harnessing space technology for peaceful purposes, contributing to various fields such as agriculture, forestry, hydrology and more. This report delves into the procurement risks faced by the SPARRSO and outlines a comprehensive approach to mitigate these challenges. The research was conducted using a mixed-methods approach, combining primary data from interviews and discussions with SPARRSO employees and secondary data from the literature. This comprehensive methodology allowed for a thorough assessment of the procurement risk landscape at SPARRSO and the efficacy of implemented risk mitigation strategies. The Key findings of this research reveal that SPARRSO primarily procures research equipment, software, materials, and services to support its mission. However, inherent risks such as delays, cost overruns, and quality issues necessitate a strategic mitigation approach. The report suggests several measures to mitigate procurement risks effectively, such as Supplier diversification to spread risks, Rigorous evaluation and qualification of suppliers, Emphasis on supply chain transparency, Continuous monitoring and management of risks, Adoption of technology solutions for efficiency, and Ensuring sustainable procurement practices. Additionally, the report has emphasised capacity building within SPARRSO’s procurement department through training and development initiatives. Collaborative engagement with suppliers and stakeholders and adopting dispute-resolution techniques are recommended to address issues proactively. Overall, SPARRSO’s proactive approach to risk management, including robust policies, capacity building, stakeholder engagement, and technological advancements, has not only been proven essential for ensuring successful project execution but also instils confidence in its ability to maintain competitiveness in the global space sector.