CENTRAL TENDERS COMMITTEE

( CTC )

Current procurement framework and CTC’s role in the procurement process

Why the current framework is inadequate and a summary of change initiatives underway

Areas of concern arising from CTC’s oversight process

Presentation Outline

How do we define public procurement ?

“Procurement is the whole process of acquisition from third parties and in-house providers and covers goods, services and works. The process spans the whole lifecycle from initial concept and definition of business need to the effective management or markets, through to the end of the useful life of an asset or end of service contract.”

Source: National Procurement Strategy for Local Government Crown Copyright 2003

Existing Procurement Framework

Current Procurement Framework

Cabinet

Chief Officers

Financial Secretary

Governor

Public Sector Investment Committee

Minister of Finance

Central Tenders

Committee

Commission for

Standards in Public Life

Departmental Tenders

Committees (Evaluation)

Direct ExecutiveAdvisory

Oversight

Roles and Responsibilities

o Public Sector Investment Committee (PSIC)

o Chief Officers and DTC’s

o CTC

o Commission for Standards in Public Life

ChairmanNick Freeland

Deputy Chairman

Lee Ramoon

Wanda Ebanks

Edward Howard

Jerry Wood Richard Harris

John Thompson

CTC Membership

Secretary Shanna

Saunders-Best

Former, Senior

Partner PWC

Manager, Operations & Infrastructure,

HSA

Business Owner, Private Sector

Acting Managing

Director, NRA

Partner, Maples &

Calder

Director, Revenue

Unit,

www.centraltenders@gov.ky

CTC Terms of ReferenceOversee the public tendering for goods and services by the Cayman Islands Public Sector to ensure impartiality, transparency and value for money

Ensure compliance with statutory and regulatory requirements as well as applicable CTC guidance notes

Overriding requirement – Value for Money and that price and quality is no greater than overseas procurement

Current Permitted Procurement Methods under PMFL

Open Tendering- “Prescribed Tendering Process” must be followed for all contract values over $50k

Restricted Tendering - “pre-qualification” tender process permitted for contracts with a value over $250k. Requires approval of CTC to commence the process

Sole Source Supplier -only one supplier can provide the supplies, services or assets

Is the Current Procurement Framework Inadequate ?

o Reports of Auditor General, Commission for Standards in Public Life and Keith Luck all talked about inadequacies and recommended changes

o Feedback from Chief Officers and others involved in the procurement process

What We Are Doing?

2 Parallel initiatives:

o CTC advancement of its own policies, procedures and guidance documentation; and

o Work of the Sub-committee of the Procurement Working Group

CTC Policies & Procedures Manual

TABLE OF CONTENTSGovernance framework1.1 Central tenders committee terms of reference1.2 Extract from the Financial Regulations (2010 Revision)1.3 Appointment of members of the Central Tenders Committee1.4 Register of interest and resolving conflicts of interest1.5 Confidentiality 2. Policies and procedures2.1 Selecting the appropriate tender methodology 2.2 Open tender process2.3 Restricted tenders2.4 Competitive dialogue tenders 2.5 Single source supplier2.6 Disposal of assets2.7 Bid opening outside of scheduled meetings 3. Guidance documents3.01 Principles governing public procurement3.02 Conforming to legal requirements3.03 Use of alternative procurement methods3.04 Use of the single source procurement method 4. Exposure drafts4.01 Developing the business case and procurement plan4.02 Competitive dialogue procedures (alternative procurement method)4.03 Post implementation reviews4.04 Application of weighting methodologies 5. Glossary 

CTC Principles Governing Public Procurement

Accountability

Competitive Supply: procurement should be carried out by competition unless there are convincing reasons to the contrary

Consistency

Effectiveness

Value for Money: the procurement processes should be carried out to achieve the most advantageous combination of cost, quality and sustainability over the life cycle of the project

Fair-dealing

12 PrinciplesIntegration

Integrity

Informed decision-making

Legality

Responsiveness

Transparency

Framework for Fiscal Responsibility (FFR)

• One of the core Policy Principles is : “ Putting value for money considerations at the heart of the decision making process”

• FFR identifies 5 key stages in the planning, development and execution of a project:

• Appraisal and business case• Procurement• Contract Management• Delivery• Evaluation

Areas of Concern

1. Circumvention of CTC oversight by keeping tender thresholds below $250k

2. Business cases, that are non-existent, poorly prepared or inconclusive

3. Inadequate funding of projects. Projects are started without securing all budgetary funding to complete the project in a single period.

4. Absence of policy direction at the Cabinet and Ministry levels

Conclusion

The End.

Thank You