Islamabad, June 25, 2014 (PPI-OT): The Competition Commission of Pakistan (CCP) ensured participation of maximum bidders in the procurement of bulldozers by the Agriculture and Cooperatives Department (A and CD), Government of Balochistan.
The Government of Balochistan has allocated PKR 3 billion in budget 2014-15 for the procurement of 200 bulldozers for agriculture purposes. A and CD, Balochistan, recently floated a tender to procure the first lot of 40 Bulldozers.
CCP received complaints from suppliers of bulldozers concerning the terms of tender. It was complained that five brands of bulldozers were invited in the tender; however, bids were to be entertained only if the bidders provide details of supply during the last five years for their brands offered in Pakistan.
CCP learnt that the import data of Customs shows import of only one brand of bulldozers in Pakistan during the last five years, thereby inevitably creating a monopoly of one supplier.
It was also complained that the pre-requisite horse-power (HP) range for the procurement of bulldozers was set at 120-125 HP, despite the fact that the majority of the brands mentioned in the tender failed to meet this requirement.
CCP learnt that the former Ministry of Food, Agriculture and Livestock had established a horse-power range between 120-130 HP to ensure better competition and the practice was followed by the Agriculture Department of Sindh in its latest procurement.
These pre-requisites in the tender document appeared to hinder a level-playing field among various suppliers of bulldozers by ostensibly foreclosing the market to most of potential bidders. CCP advised A and CD that the inclusion of the above pre-requisites would restrict competition in the market at a heavy cost to the national exchequer.
In response, AC and D acknowledged the competition concerns and resolved the matter by amending the bidding document, which required supply record during the last twenty five (25) years instead of five (5) years. Further, A and CD, Balochistan agreed to take appropriate action to increase HP requirement from 125 to 130 HP to ensure maximum participation of bulldozer suppliers.
In developing countries where public procurement amounts on an average between 15% and 30% of gross domestic product, fair and open competition leads to quality, efficiency and value for money to the procuring agencies in the use of public money. CCP is appreciative of prompt response and diligent efforts by the A and CD, Balochistan to promote competition in the supply of bulldozers.
For more information, contact:
Joint Director (Media and Communications)
Competition Commission of Pakistan (CCP)
4-C, Diplomatic Enclave, Shams Gate G-5, Islamabad, Pakistan
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