Jamaica
Procurement practitioners within the Government Service recently participated in a capacity-building workshop geared at improving competencies, efficiency, and productivity in the procurement of goods, services, and resources on behalf of the Government of Saint Lucia.
Director of Procurement in the Department of Finance, Anthony Jean, said the training allowed participants to understand and utilize the provisions within the new procurement legislation to perform better procurements to benefit their agencies.
“It’s not enough that officers know what’s in the law but they appreciate the underlined ‘Why’ allows them to use that as a tool to effectively accomplish what the agencies require. It’s not purchasing or performing a procurement in compliance with the law, but you want to be able to do it in a manner that really gets you what you want for your agency.”
Senior Consultant with Charles Kendall Partnership, Rob Thompson was one of the facilitators of the workshop.
“I’ve been in procurement for 30 plus years working with both the private sector and the public sector but specializing in terms of public procurement and helping developing nations as well as European countries to interpret the regulations in a practical way which will deliver good value for money procurement but still ensure compliance rather than having people focus purely and simply on compliance without thinking about is it good value in the end when they make their procurements.”
He stressed the procurement officer’s important role as procurement touches more of the government’s expenditure than any other function.
“If we get the procurement right, buying hospitals, buying roads, even buying office equipment or furniture. Whatever you think the government needs, it has to be bought. And, that is why procurement is fundamentally one of the most important functions within government to deliver a good return for the investment people make in the taxes they pay.”
The International Tax Consultant implored participants to strive for value for money in procurement.
“The usual approach for people to take, because it’s the safe approach, is to buy the cheapest. So, the lowest price. What I am saying to them is its equally good value to buy one with a better life cost than the initial purchase price. So look at things over their life, and sometimes it’s worth paying more to start off with because it has a lower cost.”
The takeaway for participants, he said, is that performing good procurement leads to good compliance with the standards and legislation. The week-long workshop at the Finance Administrative Building in Pointe Seraphine also involved participants from the audit department who review public procurement.
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Jamaica
A recent social media post by The Gleaner titled “Yallahs residents want local contractors removed from roadwork project” sheds light on the disappointing state of affairs in Jamaica’s construction industry. With the residents saying local contractors are managing poorly and they would prefer a Chinese company managing, it is time for some introspection.
This emphasises the urgent need for an overhaul in the selection process of local contractors. The prevailing practice of awarding contracts primarily based on low cost has resulted in sub par project outcomes, mismanagement, and cost overruns. Let us explore the pitfalls of focusing on low cost, highlighting the case of St Thomas, and needed improvements in the procurement process to foster self-reliance in this industry.
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Caribbean
As talks continue between Guyana, Rwanda and Barbados to manufacture vaccines and medicines, the President of the East African nation told Heads of Government of CARICOM on Wednesday that the next step in cementing the arrangement is to decide on a procurement mechanism that will be sustainable.
The Rwandan President, Paul Kagame, is in Port of Spain for the first time and held a special meeting with the CARICOM Heads during the 45th meeting of the region’s Heads of Government at the Hyatt Regency.
“As a start, Guyana, Barbados, and Rwanda have embarked on a program of mutual support for the local manufacturing of vaccines and medicines. The next step is to commit to a pooled procurement mechanism that will make these facilities sustainable over the long run,” Kagame said.
It was in June 2022 that President Dr Irfaan Ali participated in the groundbreaking ceremony for a BioNTech facility – the first vaccine production facility – to be constructed in Rwanda (Kigali).
The facility is the start of a project in cooperation with Ghana, South Africa and Senegal that will allow Africa to become self-sufficient in vaccine production.
And it was there that the Guyanese Head of State stated his own intention to upgrade the country’s legislative and regulatory framework while investing in the necessary training and development research towards establishing a similar facility at home.
The President had told the News Room that the government’s development trajectory in diversifying the local economy is to invest in healthcare and education.
Meanwhile, President Kagame, in his address to the CARICOM Leaders, urged them to find a way to solve the issues of connectivity between Africa and the Caribbean in terms of transport and telecommunications.
He said, “Digital jobs will be a critical driver for high-quality youth employment for our economies, and also a key lever for offering our brightest young people an alternative to migration.
“The Commonwealth has a number of initiatives in this area, which can give us a head-start.”
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Guyana
The Public Procurement Commission (PPC) on July 5, 2023, hosted an Open Day from 9am to 2pm at the Regional Democratic Council Compound, Anna Regina, Essequibo Coast, Region 2.
A release from the PPC said that the event was held as part of the commission’s ongoing public awareness campaign to apprise stakeholders of the rules and procedures of the public procurement system.
More than 160 persons from several procuring entities, suppliers and contractors from across the coast and the public took the opportunity to educate themselves and be guided on various topics, the release said. The process included tendering tips and how to lodge a complaint.
The Chief Executive Officer of the PPC, Michael Singh and team interacted with the participants and answered questions.
Entities seeking more information may contact the PPC on telephone numbers (592) 226-3729, (592) 231-7306, and (592) 226-2364 or via email at operations.
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Jamaica
The House of Representatives on Tuesday (July 4) approved the Public Procurement (Registration and Classification of Suppliers) (Amendment) Regulations, 2023, Resolution.
The Regulations amend Part One of the Second Schedule of the Public Procurement (Registration and Classification of Suppliers) Regulations 2019.
This will increase the fees commensurate with the maximum registration period of three years in accordance with Regulation Nine of the Principal Regulations.
Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, noted that in 2019, a comprehensive law for public procurement came into effect in Jamaica that consolidated and modernised the supporting legislative framework.
He pointed out that the Act establishes the Public Procurement Commission pursuant to Section Nine of the Public Procurement Act to, among other things, promote fairness, transparency, and equity in the registration of persons, firms and entities under the Act, and the award of procurement contracts.
Dr. Clarke said Section 11 of the Act grants the Commission the power to, inter alia, approve or endorse the award of procurement contracts above the value of the tier-one limit, register and classify suppliers, approve unregistered suppliers, and assess suppliers on an ongoing basis to ensure the consistency of performance with the registration and classification requirements.
The Minister said the registration process undertaken by the Commission serves, in part, to ensure that suppliers are eligible to participate in public procurement in Jamaica. But only if such suppliers meet the minimum requirements of technical, financial, and legal capabilities that are prescribed in each category of registration.
“Accordingly, the due diligence associated with the registration of suppliers includes examination of the applicant’s business and assets, products, services, prior projects, as well as review of financial information,” Dr. Clarke said.
He informed that Regulation 10, one and two of the Principal Regulations provide that upon notification by the Commissioner that the supplier application has been successful, a fee is payable in respect of the grade in which the supplier has been classified. This, as specified in the first column of Part One of the Second Schedule of the Principal Regulations.
“These fees are applicable only to those suppliers registering in the works supplier grade. It is to be noted that it was the policy of the Commission in relation to the registration process that once an application was approved by it, a certificate of registration is issued valid for a period of one and a half years or 18 months,” Dr. Clarke said.
“After the expiration of the certificate, the supplier may elect to return to the register by resubmitting a new application for registration. It is felt that the granting of a certificate of registration for only 18 months is inefficient and costly. In order to improve efficiency in the process of registration and re-registration of suppliers, it was determined that it would be more cost-effective to increase the registration period to three years,” he added.
The Minister noted that this increased registration period is expected to result in an overall reduction in the administrative burden on suppliers who participate in public procurement.
“It is also expected to positively affect competition by making a larger pool of eligible suppliers for a longer period of time who would be capable of participating in procurement proceedings,” Dr. Clarke stated.
Additionally, the longer period of registration may attract suppliers or economic operators to Jamaica who traditionally would have opted not to participate in government procurement.
“The Government, in extending the registration period from one and a half years to three years, is a good thing. The only challenge is that there will be loss of revenue to the Commission, because the Commission is only paid when the registration happens. We don’t propose any nominal increase in the fees. But what we need to do is to ensure that the Commission is not out of pocket,” Dr. Clarke said.
“So, if for 18 months, the registration fee was for $50,000, then for three years for the Commission not to be out of pocket, the fee would have to be $100,000. That is what this [that] we are debating is designed to do – to support the Commission in lengthening the registration period from 18 months to three years, but to do so in a way that is revenue neutral,” he added.
The Minister said the Public Procurement (Registration and Classification of Suppliers) (Amendment) Regulations, 2023 will enable the Commission to efficiently fulfil its functions of registering and re-registering suppliers.
For his part, Minister Without Portfolio in the Ministry of Economic Growth and Job Creation, Hon. Everald Warmington, welcomed the regulations.
“It’s been a long road. It took a long time but, finally, contractors do not have to go through this laborious process… every 18 months. They have breathing room now [to] re-register every three years,” he said.
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