Post procurement review to assess the extent of value for money following Public Procurement Act-2006, Public Procurement Rules-2008 in the public procurement process: a case studies of some selected procurement contracts of Local Government Engineering Department (LGED)

Abstract

This study evaluates the extent of Value for Money (VfM) achieved in procurement practices of the Local Government Engineering Department (LGED), focusing on compliance with the Public Procurement Act (PPA) 2006 and the Public Procurement Rules (PPR) 2008. Post Procurement Review (PPR) serves as a critical mechanism for ensuring accountability, transparency, efficiency, and effectiveness in the use of public resources in Bangladesh. The study examined seven procurement contracts drawn from three major LGED projects: Construction of Important Bridges on Rural Roads (Phase II), Resilient Infrastructure for Adaptation and Vulnerability Reduction (RIVER), and Greater Dhaka Rural Infrastructure Improvement Project-3 (GDP-3). These contracts, covering goods, works, services, and consultancy, were implemented through a variety of methods including RFQ, OTM, LTM, OSTETM, DPM, and ICS. The findings highlight a mixed picture of performance. Routine and low-value contracts demonstrated strong compliance with PPR-2008, timely completion, and in several cases, measurable cost savings, reflecting efficiency and effective contract management. In contrast, high-value and technically complex works contracts were marked by delays in evaluation and implementation, weak competition, cost overruns, and inadequate enforcement of contractual provisions such as Liquidated Damages. Furthermore, incomplete documentation and insufficient justification for non-competitive procurement methods weakened overall transparency and accountability. The study concludes that LGED has developed considerable strength in managing routine procurement activities but faces systemic weaknesses in handling high-value and complex contracts. Addressing these challenges requires stricter enforcement of compliance mechanisms, better cost estimation, stronger market engagement to enhance competition, and greater reliance on digital platforms such as e-GP to improve efficiency and transparency. Capacity building of procurement officials and more robust monitoring systems are also essential to reduce irregularities and delays. Overall, the study underscores that effective application of PPA-2006 and PPR-2008, supported by institutional reforms and improved procurement governance, is crucial for ensuring that LGED’s procurement activities consistently deliver Value for Money and contribute to sustainable development outcomes in Bangladesh.