Conceptualized and development of preliminary strategic procurement planning analysis outline for Local Government Engineering Department (LGED)

Abstract

The strategic procurement planning process is essential for an organization looking to streamline its procurement procedures and cut costs. It is necessary to examine the organization's past purchasing practices, determine procurement goals and objectives, evaluate risks and opportunities, and develop a procurement strategy aligning with its objectives. Organizations may enhance contractor relationships, streamline procedures, and increase efficiency with a well-prepared procurement plan. The organization must regularly examine and adjust its procurement strategies to remain effective in the ever-changing business environment.

The Local Government Engineering Department (LGED) is in charge of carrying out a number of infrastructure development projects in Bangladesh. LGED follows the Public Procurement Act (PPA) 2006 and the Public Procurement Rules (PPR) 2008 for a competitive and transparent procurement process that allows for fair and equal access to procurement opportunities for all eligible contractors. Right now, the procurement plan of Development Project Proposal (DPP) is made based on the previous and past experience of LGED officials. But no written format and schedule are available in PPA and PPR to analyze and formulate a procurement plan for DPP.

It is observed that most of the causes of project time and cost overrun would be minimized if a good procurement plan is made. So in this report, a 03 (Three) stage-based Preliminary Strategic Procurement Planning Analysis Outline has been developed for LGED. In the 1st stage, Basic procurement-related Information, Contract Period Information, and Obstacle faced during the implementation of contract-related information Contractor/Consultant Preliminary Evaluation Data will be collected. In the 2nd stage, risk identification will be conducted through a root cause analysis, and based on risk likelihood and risk consequence, risk rating will be done for each risk. A preliminary risk rating matrix has been developed in this report. In the 3rd stage, based on the options analysis Indicator, options analysis and decision-making section have been developed in this report. Advanced research needs to be conducted to gain a deeper insight into the strategic procurement planning issue concerning public procurement.