e-GP in mechanical wing procurement in roads & highways: an assessment of efficiency

Abstract

This research focuses on the inefficiencies of e-GP in public sector procurement process with reference to Roads and Highways Department civil work contracts. Roads and Highways Department (RHD) has responsibilities for the construction, repair and maintenance works of highway network of the country. This requires efficiency in procurement process which ensures a much higher Value for Money (VFM). The goal of this thesis was to identify the inefficiencies in the procurement process especially in e-GP, sources of these inefficiencies and to find the probable solutions. For this purpose the trend and amount of inefficiencies have been quantified from primary data collected from the working divisions of RHD Mechanical Wing. The practicing professionals of RHD have been interviewed through a questionnaire and from their opinions the major parameters of inefficiencies have been identified and their suggestions about improving efficiencies have been congregated. Deviation as high as 56.55 percent at one end and -9.09 percent on the other end from the engineer’s estimate indicate scattered values of bidding, inefficiency, lack of consistency and manipulation in the procurement cycle of RHD. From the qualitative interview the major parameters of inefficiencies have been identified which include tendency to become the lowest bidder to grab the contract Collusion, no defined rate schedule, e-GP is not fully implemented was mentioned. Due to time and budget constraints, the correlations of major parameters could not be quantified and was kept qualitative. The recommendations to improve efficiency in the procurement practices include change of mindset and work with commitment for the country, to implement the full e-GP system, increase the financial power of delegated officials, rating on suppliers based on KPI, integrity and devotion on tasks, more advertisement of e-GP, proper planning in higher authorities providing relevant training to the employers of different level, sufficient amount of fund is to provide for mechanical wing in the early of financial year, short listing of able performers and more support to staff regarding mechanics, driver etc, updated rate schedule, some provisions to face emergency in ferry service and in workshop, proper Training on e-GP among the suppliers, employees and other stakeholders were proposed.