# I. Introduction a) Background and Context rocurement" means the purchasing or hiring of Goods, or acquisition of Goods through purchasing and hiring, and the execution of Works and performance of Services by any contractual means. When procurement is done with public money, then it is called public procurement. Until 2003, there was no standard and legal framework for public procurement in Bangladesh and General Financial Rules (GFR) had regulated public procurement procedures and practices in Bangladesh. These rules were originally issued during the British period and slightly revised in 1951 under the Pakistani rule. After Bangladesh's independence, few changes were made to these rules in 1994 and 1999 respectively (Islam, 2011). To ensure transparency and accountability in the procurement of goods, works or services using public funds, and ensuring equitable treatment and free and fair competition among all persons wishing to participate in such procurement, the Government of the Upon issuance of the PPA 2006 and PPR 2008, the government agencies are bound to follow the Act and Rules in the day to day procurement activities of their own. The Central Procurement Technical Unit (CPTU) of the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning have been established for carrying out the purposes of Section 67 of PPA 2006 which states as follows: Section 67: For carrying out the purposes of the Act, the Government shall, through a Central Procurement Technical Unit or any other unit established by it relating to procurement monitoring, coordination and management, perform the following responsibilities, namelya. Providing for monitoring compliance with and implementation of this Act through the authority as designated by the Government; b. Arranging for performance of the necessary functions and responsibilities incidental thereto, through the authority as designated by the government and c. Performing any other responsibilities as prescribed. # b) Statement of the Problem Procurement of Goods, Works, and Services are also covered by the IMED's existing way of undertaking implementation monitoring and evaluation tasks but not monitored and evaluated on the basis of any key performance monitoring indicators. That's why CPTU of IMED is monitoring procurement performance through the PPRP-II project. CPTU has appointed a Project Implementation Support Consultant for each of the four target agencies. These consultants are submitting the procurement performance report of each agency on quarterly basis. Also, a consultancy firm, Survey Research Group (SRG) Bangladesh, appointed by CPTU, is submitting quarterly the reports to CPTU based on KPIs. Though it is reported that procurement performance of the target agencies are improving day by day, it would be wise enough to have an independent study to ascertain the procurement performance of the target agencies. # c) Significance of the proposed research The procurement performance of the target agencies have been described and classified in terms of transparency, efficiency, competitiveness and compliance of government procurement rules and procedures. Among the four different categories, compliance of PPR 2008 is considered as the vital one. It is generally considered that if compliance is ensured, then the government purpose for ensuring value for money in the public procurement will be possible. Among the four target agencies, PWD has a significant quantity of budget allocation against the projects in the Annual Development Program me (ADP). # d) Research Questions This study is aims to know the extent of compliance of PPR 2008 by PWD procurement activities. Also it is intended to know the hindrances which have been faced by PWD while complying with the rules of PPR 2008. # f) Scope of the Study Under the supervision of the Project Implementation Support Consultant appointed to PWD on behalf of CPTU, the procuring entity (PWD) is carrying out the monitoring and evaluation of their procurement performance in accordance with the set KPIs. But an independent study is intended from the concerned authorities to find out the gap of compliance of PPR 2008 in PWD. This study is such an approach for ascertaining the facts in PWD. # g) Limitations of the study The limitations of this study have come from both its scope and its methodology. Survey was confined to electro-mechanical works of PWD Head Quarter and Dhaka. The respondents were selected mainly from the organization's head office and Sher-e-Bangla Nagar office of Dhaka city. On the other hand, officers were selected on the basis of researcher's convenience. Key informant interview was conducted on few senior officers and with the consultant engaged in PWD from CPTU. Time constraint was also one of the major limitations of the study. Most of the respondents had gathered different types of experiences in different projects; sometimes experiences were not generalized rather project-specific. This issue had come across during the interviews. Also the officers were requested to give answers based on their own perception. As the perceptions on situation varied from person to person, this may have been a major limitation of the study. # II. Methodology a) Methods of collecting data/Sampling method A questionnaire survey was adopted for this study. Survey method was used as this is considered as the best method available to the social scientists interested in collecting original data. It gives a clear idea about the actual facts. A quantitative method was followed in this study. A questionnaire survey was adopted for collecting primary data from different stakeholders related to procurement activities of PWD and having an acquaintance with PPA 2006 and PPR 2008. For the indepth study on compliance issues of PPR 2008, Questionnaire was given to all Division of PWD that are closely related to Electro-mechanical works with a general introduction of the research. Among them 20 (Twenty) Divisions replied with the procurement data of single project. Here both only closed ended questions were stipulated for getting the in-depth essence of procurement activities. Before asking for filling the questionnaire, the general idea of the research objectives were exchanged with them. After the exchange of general idea of the research objectives, the questionnaire was given to them. They were requested to fill the questionnaire based on the actual data of a specific project under his/her territory. Some electronics means was also used to collect feedback from some of the PWD persons affiliated with the project. PWD Head Quarters and District offices were selected for collection of data in the questionnaire. Due to time constraint of the present study, it was not possible to collect data from all the districts. The study was mainly focused on the BCC Bhaban's Electromechanical works; As the implementation of work from the ministry wise project progress report has been attached in Appendix C, from where we get the idea that most of the works of the project have been completed and some of them are ongoing and a few of them are not yet started as work order has recently been placed against those works. Especially those which are in the middle stage of their implementation were considered for the study, but some procurement information from the rough estimate of the works as stated bellow- We get the original approved official estimate on which the Project work was performed. # Global # c) Study Period Survey was conducted at different Division offices of PWD, Planning Commission, IMED, and TEC members of PWD from Roads and Highways Department (RHD) and Public Works Department (PWD) Dhaka, Bangladesh from December 2015 to May 2016. # d) Sample Size For Questionnaire, the respondents were categorized in four different types namely i) PWD's employee, ii) TEC Members, iii) Persons who are dealing with PWD's projects iv) Others. As there are numerous people are concerned with PWD's procurement activities of Electro-mechanical works, a total of 28 different officers given their data. Projects for the study were randomly selected as PWD does not do a lot of Electro-mechanical Project work every year, and due to the time constrain of the dissertation. As a means of processing, collected data have been cleaned, edited, arranged and coded before statistical analysis. The main statistical analytical tool used in this study was Statistical Package for Social Science (SPSS) to analyze and interpret the matter of the study and for preparing the frequency table & other tables and for constructing pie charts. 5-point Likert scale was used in the questionnaire to categorize the answers for easy analysis. # e) Data processing and Analysis/Analytical Fram Microsoft Excel has been used for preparing Some of the tables related to the BCC Bhaban Project. Microsoft Word has been used for preparing the report. # III. Result & Discussion Aim of this study is to find out the level of compliance of PPR 2008 by BCC Bhaban in its procurement activities. This study is specifically aimed to assess the gap of compliance and scope of improvement for implementation of PPR 2008 in BCC Bhaban vertical extension 3 rd phase. # a) Demographic overview of the respondents Questionnaire survey has been conducted among officers mainly responsible for Vertical Extension of BCC Bhaban under the project "Strengthening of BCC Bhaban by Development of structure". These officers are from PWD and involved in the project in various engineering activities. Also the respondent holds different ranking and all of them are well acquainted with procurement process of BCC Bhaban extension 11 th floor to 14 th floor. Below is a summary of demographic information of respondents, # Overview of survey questionnaire The respondents were asked Seventeen (17) questions regarding compliance of PPR 2008 in BCC Bhaban's procurement activities for the Vertical extension from 11 th floor to 14 th floor. Questionnaire were asked to the respondents on compliance KPIs in a 5point Likert scale where as 1 for "Very Poor", 2 for "Poor", 3 for "Neutral", 4 for "Good" and 5 for "Very Good". Frequency distributions of response are shown in Table 2 # c) Overview of the Key Informant Interview Key informant interview has been conducted with several engineers involved in strengthening of BCC Bhaban by development of structure, 3 rd phase (11 th floor to 14 th floor). Most of the key informants mentioned that before PPR, General Financial Rules (GFR) was applied for the procurement of goods, works and services. The monitoring and evaluation of the then procurement activities were not so structured. These all were streamlined with the introduction of PPR 2003 and strengthened after PPR 2008. All key informants were asked about the compliance of KPIs and in-depth opinion was expected for a clear view of the issue, understanding the same and concluding thereof. Also, the key informants were asked about the problems of compliance of PPR 2008 in their respective procurement activities. The opinion of the key informants were noted down and used for analyzing the findings of the questionnaire survey. In response to this question, 42.9% of the respondent have given their opinion as 'Very Good' while 28.6% opted for 'Good',14.3% opted for 'Neutral' response to the question. 10.7% & 3.6% opted for 'poor' or 'very poor' respectively. The mean, median and mode of the responses are 3.964, 4.00 and 5.00 respectively. The standard deviation of the response is 0.63725 which means a small effect on the study result is present. It indicates that BCC Bhaban is complying to the Rule 36 of PPR 2008 keenly following standard time between tender opening and tender valuation. Key informant interviews also reflected in the similar manner. Year 2016 F KPI 19: BCC Bhaban followed standard time between submission and approval of Tender Evaluation Report (TER) KPI 14: BCC Bhaban followed standard time between tender opening and tender evaluation In this question, 39.3% respondents choose 'Very good' while 35.7% reported as 'Good' and 14.3% shown 'Neutral' response to the question. 7.1% marked it as 'poor' while 3.6% said its 'very poor'. The mean, median, mode and standard deviation of the responses are 4.00, 4.00, 5.00 and 1.088 respectively. In response 35.7% of the respondent have given their opinion as 'Very good' while 32.1% reported as 'Good' and 25% ticked 'Poor' as response. 3.6% gave verdict for 'poor' none opted for 'very poor'. The mean, median, mode and standard deviation of the responses are 4.77, 5.78, 4.00 and 5.00 respectively. Similar results were found among the opinions of the interviewee while conducted the key informant interview. A standard deviation of 9.294 also indicates a significant effect on the study. KPI 21: In BCC Bhaban, TEC submits TER directly to the CAA The perceptions of the respondents on this question in this question were also very scattered, 32.1% of the respondent opted for 'very good' while the minimum 3.6% ticked 'Poor'. The other 25% respondents chose 'Good' and 39.3% remained 'Neutral' in their opinion. However, no 'Very poor' answer was received. The mean, median, mode and standard deviation of the responses are 3.857, 4.00, 3.00 and 0.9315 respectively. Though majority of the respondent's perception is 'Very good', but it can be said that BCC Bhaban is complying this rule in a fairly basis as there some respondents choose 'Poor' option. In response to this question, respondents' choices were also scattered. 25% of the respondents (60%) answered the question as 'Very Good' and 35% answered it as 'Good'. 35.7% marked as 'neutral', and 3.6% respondents went for poor'. The mean, median, mode and standard deviation of the responses are 3.82, 4.00, 3.00 and 0.862 respectively. According to the responses regarding this requirement of PPR 2008, the present study indicates that BCC is fairly comply with this timeline. In response to this question also, respondents' choices were also scattered majority of the respondents 50% answered the question as 'Good', while 21.4% opted for 'Very Good', 'Neutral' 10.7%, 'Poor' 14.3% and 'Very poor' 3.6%. Thus, there is an overall positive response to the question meaning. In response to this question, the respondents had shown a mixed response of their perceptions. 32.1% of the respondents opted for 'Very Good' while the same number of respondents for 'Good'. Among others, 25% opted for neutral, poor 3.6% & very poor 7.1%.shown their perception as 'Poor' while the rest 2.9% only replied as 'Very good'. There was no one answered the question as 'Very poor'. This has been shown in Table 3 and graphically expressed in Chart 10. The mean, median, mode and standard deviation of the responses are 3.11, 3.00, 3 and 0.676 respectively. While talked with the key informants, there found a perception that contractor's payment is timely disbursed. In this question equal number of respondents 28.6% marked it 'Very poor' and 'Good'. While 14.3% remain 'Neutral' in their perception 7.1% was in favor of the 'Poor' opinion. However, 21.4% stated their perception to this question as 'Very Poor'. The mean, median, mode and standard deviation of the responses Payment of interest for delayed payment is a mandatory requirement of PPR 2008. However, from the present study, it can be said that BCC Bhaban is not paying any interest for a delayed payment. While conducting key informant interview, the respondents expressed their opinion candidly that as there no provision of sufficient fund in the contract, the contractors never paid for a delayed payment. # IV. Conclusion ![People's Republic of Bangladesh has enacted Public Procurement Act 2006 (hereinafter called PPA 2006) on 06 July 2006. Under the framework of PPA 2006, the government issued Public Procurement Rules 2008 (hereinafter called PPR 2008) which has come into effective on January 31, 2008. All these were the outcomes of the reform process taken by the government to streamline the public procurement. Earlier in 2003, Public procurement Regulations 2003 which was effective till the PPR 2008 was issued (Hoque, 2010).](image-2.png "") ![d) Findings of the questionnaire survey, analysis and discussion KPI 6: BCC Bhaban is maintaining time for 'publishing Advertisement and Tender submission deadline'The perception of the respondents varied for this question where 14% respondent encircled 'neutral' option of the questionnaire. 46% marked it it as 'good', and 39% said its 'Very Good'. It is assumed that BCC Bhaban is fairly following the rule, as the standard deviation yield small dispersion in responses. The mean, median, and mode of the responses are 4.25, 4.00 and 4.00 respectively.A Critical Analysis on Electro-Mechanical Works of Public Works Department Based on Key Performance Indicators to Comply PPA 2006 & PPR 2008 Global Journal of Researches in Engineering ( ) Volume XVI Issue VII Version I KPI 11: In BCC Bhaban, TOC consist of at least one member from TEC Majority respondents selected two options: 'Very good' and 'Good'. 57.1% of respondents answered the question as 'Very good' and 37.7% answered it as 'Good'. Only 7.1 % answered it as 'neutral', no 'poor' or 'very poor' were being recorded. This express that BCC Bhaban is fairly complying to the Rule 7 of PPR 2008 where Tender Opening Committee (TOC) is always consisted of at least one member from TEC. The standard deviation of the response is 0.63828 which means a small effect on the study result. The mean, median and mode of the responses are 4.50, 5.00 and 5.00 respectively. According to Schedule II [Rule 7] of PPR 2008, Tender Opening Committee (TOC) must include one (1) member from Tender Evaluation Committee (TEC). From the perceptions of the respondents of questionnaire survey and responses of the key informants, it can be said that BCC is complying the Rule 7 of PPR 2008 as the responses are highly positive to this issue. KPI 13: BCC Bhaban followed the rule of including Two external members for TEC 60.7% of the respondents have chosen 'Very good' while 32.1% verdict 'Good' on that question. 7.1% of the respondents remained 'neutral'. No one selected 'poor' or 'very poor' option. The standard deviation of the response is 0.63725, which means small effect on the study result. It indicates that BCC Bhaban is complying the Rule 8 of PPR 2008 very fairly and two external members are included in the Tender Evaluation Committee in general. The mean, median and mode of the responses are 3.97, 4.00 and 5.00 respectively.](image-3.png "") 2016![The mean, median, mode and standard deviation of the responses are 3.71, A Critical Analysis on Electro-Mechanical Works of Public Works Department Based on Key Performance Indicators to Comply PPA 2006 & PPR 2008 Global Journal of Researches in Engineering ( ) Volume XVI Issue VII Version I 68 Year 2016 Global Journals Inc. (US) KPI 20: In BCC Bhaban, tenders are approved by proper CAA with DFP KPI 25: In BCC Bhaban, timeline between approval of TER and issuance of NOA is followed properly. KPI 31: In BCC Bhaban, liquidated damage clause is imposed in the contracts where applicable as per Rule 39 (27) 4.00, 4 and 1.083 respectively. As per Rule 39 (27) of PPR 2008, it is compulsory to include the liquidated damage clause in the contracts where applicable. Though the present questionnaire survey indicates an overall positive result towards imposing liquidated damage clause in the contract but the key informants' does not validate this.](image-4.png "2016 F©") ![Compliance checking of PPR 2008 is a crucial issue for insuring good standards and value for money in the public procurement. The PPRP II has added a new dimension in the field of monitoring in the sense that it envisages to assess the compliance of the provisions of PPA-2006 and PPR-2008. This has made a shift from the existing approach and methods in dealing with procurement using public funds. Though awareness to some extent about PPA 2006 and PPR 2008 has already been developed within the officials and staffs of BCC Bhaban through mandatory application of PPR 2008 in practice and training, it will certainly take some time to get momentum of the reform activities. The present study result shows an adherence to the rules of PPR 2008 in BCC Bhaban in carrying out most of the compliance related KPIs. Though varied in different quarters of the years, however it shows a gradual improvement since starting of monitoring. In respect of KPI 6 (Average number of days between publishing of advertisement and Tender submission deadline), KPI 11 (Percentage of cases TOC included at least ONE member from TEC), KPI 13 rcentage of cases TEC included Two external members outside the Ministry or Division), KPI 14 (Average number of days between Tender opening and completion of evaluation), KPI 19 (Average number of days taken between submission of Tender Evaluation Report and approval of contract) and KPI 20 (Percentage of Tenders approved by the proper financial Global Journal of Researches in Engineering ( ) Volume XVI Issue VII Version I 69 Year 2016 KPI 33: In BCC Bhaban, contractor payment is timely disbursed as per Rule 39 (22) KPI 35: In PWD, interest is paid for delayed payment regularly (Pe delegated authority) and KPI 25 (Average number of days between final approval and Notification of Award (NOA)), BCC Bhaban is fairly following the rules.](image-5.png "F") 1Taka inLac. 2Taka inLac. 4Frequency PercentValid PercentCumulative PercentValidNeutral414.314.314.3Good1346.446.460.71139.339.3100.0Total28100.0100.0 5FrequencyPercentValid PercentCumulative PercentValidNeutral27.17.17.1Good1035.735.742.9Very Good1657.157.1100.0Total28100.0100.0 3 6A Critical Analysis on Electro-Mechanical Works of Public Works Department Based on Key PerformanceIndicators to Comply PPA 2006 & PPR 2008Respondent'sFrequenPercentOrganizationPWD28100.0Total28100.0DesignationAssistant Engineer932.1Senior Assistant Engineer621.4Executive Engineer310.7Year 2016Administrator/Consultant Project Director Total6 4 2821.4 14.2 100.064Relevancy with PWD Employee932.1( ) Volume XVI Issue VII Version ITEC Member Dealing with BCC Bhaban 12 5 Others 2 Total 28 Education Level Masters' 3 Bachelor 24 Others 1 Total 28 Training on PPA/PPR 2008 Yes 25 No 317.8 42.8 7.1 100.0 10.7 85.7 3.6 100.0 89.3 10.7Global Journal of Researches in EngineeringValidTotal Good Very Good Neutral9 17 2 Frequency28 Percent 32.1 60.7 7.1100.0 Valid Percent 32.1 60.7 7.1 Cumulative Percent 39.3 100.0 7.1Total28100.0100.0F © 2016 Global Journals Inc. (US) b) 7Valid PercentCumulative PercentValidVery Poor13.63.63.6Poor310.710.714.3Neutral414.314.328.6Good828.628.657.1Very Good1242.942.9100.0Total28100.0100.0ValidVery PoorFrequency 1Table 8: KPI_19 Percent Valid Percent 3.6 3.63.6 Cumulative PercentYear 2016Poor Neutral2 47.1 14.37.1 14.310.7 25.065ValidGood Very Good Total Poor Neutral10 11 28 Frequency 1 735.7 39.3 100.0 Table 9: KPI_20 Percent Valid Percent 35.7 39.3 100.0 3.6 3.6 25.0 25.060.7 100.0 3.6 28.6 Cumulative PercentXVI Issue VII Version IGood 53.00 Total Very Good9 10 1 2832.1 35.7 3.6 100.032.1 35.7 3.6 100.060.7 96.4 100.0) VolumeJournal of Researches in Engineering ( FGlobal 10Frequency Percent Valid PercentCumulative PercentValidPoor13.63.63.6Neutral1139.339.342.9Good725.025.067.9Very Good932.132.1100.0Total28100.0100.0Table 11: KPI_25FrequencyPercentValid PercentCumulative PercentValidPoor13.63.63.6Neutral1035.735.739.3Good1035.735.775.0Very Good725.025.0100.0Total28100.0100.0Table 12: KPI_31FrequencyPercentValid PercentCumulative PercentValidVery Poor13.63.63.6Poor414.314.317.9Neutral310.710.728.6Good1450.050.078.6 are 3.35, 4.00, 4.00 and 1.5205 respectively. © 2016 Global Journals Inc. (US) From the present study, in BCC Bhaban Project, PPR 2008 is being complied around 70%. This is seen from the viewpoint of compliance of KPIs which are only 17 out of 45 key procurement performance indicators. * Bangladesh Computer Council Electro mechanical Works, tender document, tender opening report, tender evaluation report, project completion report implemented by Public Works Department (PWD * Central Procurement Technical Unit (CPTU), Implementation Monitoring and Evaluation Division (IMED), Ministry of Planning (MoP), Government of the People's Republic of Bangladesh E/M Division-7, Sher-e-Bangla Nagar 19 February 2013 * Public Procurement Law in Bangladesh: From Bureaucratisation to Accountability DVelimirovic MVelimirovic RStankovic ; R Serbian Journal of Management 6 1 2011. 2011. 2010. 20 June 2011 NUJS LAW REVIEW * Finance Division, Ministry of Finance (MoF), Government of the People's Republic of Bangladesh, retrieved on Mof General Financial Rules (GFR) 1998. 19 February 2013 * Delegation of Financial Powers for Development Projects, Finance Division, Ministry of Finance(MoF), Government of the People's Republic of Bangladesh Mof 2004. 22 December 2004 dated * Implementation Monitoring and Evaluation Division (IMED), Ministry of Planning (MoP), Government of the People's Republic of Bangladesh Mop Central Procurement Technical Unit (CPTU) Bangladesh Gazette 2008. 2006. January 2008 27 Public Procurement Act (PPA) * Implementation Monitoring and Evaluation Division (IMED), Ministry of Planning, Government of the People's Republic of Bangladesh Mop Central Procurement Technical Unit (CPTU) Bangladesh Gazette 2008. 2008. January 2008 28 Public Procurement Rules (PPR) * Government of the People's Republic of Mop Ministry of Planning (MoP) 2012 Annual Development Programme (ADP) * References Références Referencias Bangladesh * Revised Annual Development Programme (RADP) 2011-2012. Ministry of Planning (MoP), Government of the People's Republic of Bangladesh Mop 2012 * Srgb Half-yearly Reports 2012. July-December 2010 to January-June 2012 CPTU, IMED. Survey and Research Group of Bangladesh (SRGB * Quarterly Reports Srgb 2012. April-June 2010 to April-June 2012 CPTU, IMED. Survey and Research Group of Bangladesh (SRGB