6 Things to know about New Procurement Framework
Submitted by : Ravi Kumar
The World Bank Group
Source: World Bank Blogs
Students in public schools without textbooks at the start of the year. Health centers in villages without even the most basic medications. Oftentimes procurement is to blame. An efficient procurement system isn't just a good idea, it's a necessary tool for all governments (local and national) to function properly and deliver public services. Keeping pace with global trends, on July 1 the World Bank will roll out the new Procurement Framework for countries that procure goods and services under Bank-finance projects. The new framework will be implemented for all investment projects with a Project Concept Note on or after July 1, 2016. Led by the Global Governance Practice (GGP) with support from Operations Policy and Country Services (OPCS), the framework is designed to increase flexibility, efficiency, and transparency of procurement process, to better meet the needs of client countries.
Here are six things you should know:
- Expanded vision: The framework will ensure greater value for public spending, while enabling adaptation to country contexts. It will also increase opportunities to build the national capacity of client countries, and promote strengthening of national procurement systems.
- Increased flexibility and choice: The framework provides a wider range of procurement approaches and methods than is currently available. For example, the existing guidelines offer eight procurement methods. The new framework offers a combination of up to 71 methods and market approach options. The framework also provides opportunity for borrowers to use alternative procurement approaches for Bank-funded projects, such as those of co-financers and country agencies.
- Greater focus on project procurement design: With the Bank support, the new framework enables borrowers to conduct a comprehensive analysis of factors such as country capacity, relevant agencies, and market and procurement risks in order to enable design of the most optimum procurement strategy for each project.
- Minimizing risks: With the new framework, Bank specialists will spend more time on planning and contract management than they are able to now. Through the Project Procurement Strategy for Development (PPSD), task team leaders will have a more comprehensive understanding of the most appropriate procurement arrangements, how those arrangements will lead to achieving development objectives, and how they will minimize potential risks during project implementation. Also, enhanced hands-on implementation support will be offered to borrowers in fragile and conflict-affected areas and low capacity environments while retaining the borrower's responsibility to execute projects.
- STEP, end-to-end online tracking system: All the parties involved in procurement processes, including TTLs and country authorities, will have real time access to relevant information and data through Systematic Tracking of Exchanges in Procurement (STEP)—the Bank's new electronic procurement planning and tracking platform—thereby reducing the need for protracted email exchanges. Through STEP, all documentation submitted to the Bank will be archived automatically, making project information more accessible to key stakeholders. Watch the video to learn more about STEP!
- Streamlined prior review: The new framework shortens the time for decision-making by streamlining Bank procurement processes through reduced reliance on prior review and no-objection procedures. Depending on client's capacity, market context, and corruption risks, prior review thresholds can be significantly increased.