the csme public procurement regime: opportunities and challenges for the private sector - philip...
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SENSITIZATION OF THE PRIVATE SECTOR ON THE CSME PUBLIC PROCUREMENT REGIME
THE CSME PUBLIC PROCUREMENT REGIME – OPPORTUNITIES AND CHALLENGES FOR THE PRIVATE SECTOR
BY
Philip McClauren,
Deputy Programme Manager, CSME
June 28, 2016
Knutsford Court Hotel
Kingston, Jamaica
CONTENT OF PRESENTATION
Objectives of the CSME Public Procurement Regime
What Areas and Entities are Covered
Scope of Application of the Regime
The CSME Public Procurement Thresholds
Public Procurement Opportunities in Member States Challenges andOpportunities – Current Situation and under the Implementation ofthe Regime
OBJECTIVES OF THE CSME PUBLIC PROCUREMENT REGIME
Establish the conditions necessary for full integration of the nationalprocurement markets of Member States into a single, unified and open area forPublic Procurement to bolster the CSME
Creation of the necessary competitive and non-discriminatory conditions tofacilitate achievement of value for taxpayers’ money.
Provision of opportunities for access to a single market with regional salesopportunities.
Strengthening the competitiveness of the regional supplier base andencourage the rational use of scarce resources.
WHAT ENTITIES AND AREAS ARE COVERED
Entities
Central Government Entities
Sub-Central Government Entities
Other State Owned companies that procure goods, services and works by using public funds
What is Covered
Goods.;
Services and
Works
SCOPE OF APPLICATION OF THE REGIME
Public procurement that are at and above the agreed thresholdsfor goods, services and works
Public procurement that are not otherwise excluded from coveragein paragraph 2 or in the Annex to this Protocol.
The CSME PUBLIC PROCUREMENT THRESHOLDS
REGIME GOODS (US$) SERVICES (US$) WORKS (US$)
FRIP 100,000 100,000 1,000,000
Proposed Thresholds 150,000 150,000 3,000,000
Comparative Thresholds in the CARIFORUM –EC EPA
CARIFORUM – EC EPA 248,000 248,000 10,400,682
European Union: Central
Government (Directive
2004/18/EC)
€134,000 €134,000 €5,186,000
Other Public Sector Authorities€207,000 €207,000 €5,186,000
PUBLIC PROCUREMENT OPPORTUNITIES IN CARICOM MEMBER STATES –CURRENT SITUATION
Public Procurement Opportunities for the Private Sector including SMEs’
Some Member States have implemented a procurement policy which include for example: offsets, set aside system, margin of preference, quota or a percentage of annual procurement expenditure for SMEs
There is also a policy in some Member States to allow an undisclosed fair share of public procurement of goods and services for MSMEs’
There are Member States that have Set Aside between 20-40 percent ofprocurement budgets for SMEs in order to access to procurement opportunities.
PUBLIC PROCUREMENT CHALLENGES IN CARICOM MEMBER STATES –IMPLEMENTATION OF THE REGIME
Prohibition of the imposition of offsets in the qualification andselection of suppliers for tender awards in relation to CARICOMSuppliers
However, a margin of preference may be applied to extra-regionaltenderers
CARICOM suppliers in relation to public procurement should begiven a different meaning than what obtains in Article 32 of the RTC
SMEs and larger companies can engage in joint-bidding on cross-border procurement opportunities
PUBLIC PROCUREMENT OPPORTUNITIES IN CARICOM MEMBER STATES – IMPLEMENTATION OF THE REGIME
Procurement opportunities below the threshold would giveMember States policy space for domestic suppliers
National Treatment for all CARICOM suppliers in relation toprocurement opportunities in Member States
Opportunities for development of joint ventures, consortiums,associations, joint bidding on procurement opportunities withsuppliers in Member States
PUBLIC PROCUREMENT OPPORTUNITIES IN CARICOM MEMBER STATES –IMPLEMENTATION OF THE REGIME
Procurement opportunities funded by International Financial Institutions (IFIs),Third States and other Agencies are not covered by the Regime. Member Stateswould be able to impose offsets permissible by these agreements.
Request for quotations (RFQs) and Shopping under these IFI arrangementswould give Member States the latitude to consider a fair share of procurementexpenditure for domestic suppliers.
The Private Sector can also participate in procurement opportunities funded byIFIs both through thresholds that are at National Competitive Bidding (NCB) andInternational Competitive Bidding (ICB) levels.
PUBLIC PROCUREMENT CHALLENGES IN A CSME PROCUREMENT REGIME –INFORMATION AND COST CONSTRAINTS
Lack of information and awareness on procurement opportunities
Onerous Pre-qualification criteria and volume of information required to fillout bidding documents
High cost associated with Security Bids and Bid Guarantees
Lack of capacity to bid on high level procurement and therefore sub-contractors for most projects do most of the work for less than full payment
Over-emphasis on price which gives larger suppliers/companies a competitiveadvantage over SMEs for public contacts.
PUBLIC PROCUREMENT OPPORTUNIITES IN A CSME PROCUREMENT REGIME – INFORMATION AND OTHER RELATED MATTERS
Development of the Community Public Procurement Notice Board (CPPNB) for e-publication and e-awards of procurement opportunities
Centralized Register of Community Suppliers and National Register of Suppliersin Member States
Integration of CPPNB with existing National eProcurement Portals (Jamaica andBarbados)
Provision of National eProcurement Portals in other Member States forpublication of procurement opportunities including those below the thresholdsand procurement opportunities funded by IFIs
PUBLIC PROCUREMENT OPPORTUNIITES IN A CSME PROCUREMENT REGIME – INFORMATION AND OTHER RELATED MATTERS
Availability of information regarding Public ProcurementOpportunities in all Member States
Simplified Bidding document forms available online for eachMember State making the application process less onerous
Transparency and accountability in the bidding and awards process
The availability of historical data on Public Procurement which caninform policy on SMEs
CLOSING THOUGHT
The integration of fourteen (14) national markets into a singleunified CSME regional procurement market
Opportunities for the regional private sector to access publiccontracts for goods, services and works at an estimated value ofapproximately USD $25 billion to USD $32 billion per annum
E-Learning platform with courses, videos and demos and trainingopportunities for employees of the private sector in publicprocurement.
END OF PRESENTATION
THANK YOU