An examination of negotiation in service procurement and its application to goods and works procurement

Abstract

Introducing negotiation in goods & works procurement is very important to improving performance of the public money. Before 2003 there were no procurement regulations in Bangladesh. In fact immediate after independence, Bangladesh Forms 2908 and 2911 ware used for public procurement. The Public Procurement Regulations 2003 was first introduced in September 2003 under the title ―The Public Procurement Regulations 2003‖. and Jatio Sangshad (National Parliament) had passed ―The Public Procurement Act 2006‖. Public Procurement Act-2006 and sub-sequent Public Procurement Rules-2008 (PPA-2006 and PPR-2008) was come into effective on January 1, 2008. So a transformational change had occured in the field of Public Procurement after enactment of Act and Rules. All government organization now following PPR. During procuring and implementation of public works, government official have to face a lots of problem in tender processing. As estimated cost not disclosed to the bidder as well as unit price varying due to working situation the bidder fail to conceive the actual cost. So that there offered price varied from estimated cost. If the offered price above then estimated cost and procurer normally keeping the approval authority up to the estimated cost, complexity arises. Then it needs higher level approval or re-tendering which is time and cost consuming. In service procurement, it was found that minimum re-invitation or higher level approval required as there have a scope of negotiation. If there any limitation in tender processing due to fund shortage than the offered or coated price can be recast within the budget limit following some guideline. My investigation found that if there any scope of introducing negotiation in goods and work procurement process then the number of re-tender will be reduce. So that, development project will complete within limited time and budget. However, suppliers must be advised that this is the purpose of the dialogue. Variations may arise during the tendering process and the purchasing and supply management professional should ensure that all suppliers receive exactly the same information and, as far as possible, at the same time.