CENTRAL TENDERS COMMITTEE CTC Presentation Outline Current procurement

CENTRAL TENDERS COMMITTEE ( CTC )

Presentation Outline Ø Ø Ø 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

Existing Procurement Framework 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

Current Procurement Framework Cabinet Public Sector Investment Committee Minister of Finance Chief Officers Departmental Tenders Committees (Evaluation) Financial Secretary Central Tenders Committee Governor Commission for Standards in Public Life Direct Executive Advisory 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

CTC Membership Secretary Shanna Saunders-Best Chairman Nick Freeland Deputy Chairman Lee Ramoon Wanda Ebanks Edward Howard Partner, Maples & Calder Acting Managing Director, NRA Jerry Wood Business Owner, Private Sector Director, Revenue Unit, Richard Harris Former, Senior Partner PWC John Thompson Manager, Operations & Infrastructure, HSA www. centraltenders@gov. ky

CTC Terms of Reference Oversee 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 $50 k Restricted Tendering - “pre-qualification” tender process permitted for contracts with a value over $250 k. 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 Procurement Working Group of the

CTC Policies & Procedures Manual TABLE OF CONTENTS Governance framework 1. 1 Central tenders committee terms of reference 1. 2 Extract from the Financial Regulations (2010 Revision) 1. 3 Appointment of members of the Central Tenders Committee 1. 4 Register of interest and resolving conflicts of interest 1. 5 Confidentiality 2. Policies and procedures 2. 1 Selecting the appropriate tender methodology 2. 2 Open tender process 2. 3 Restricted tenders 2. 4 Competitive dialogue tenders 2. 5 Single source supplier 2. 6 Disposal of assets 2. 7 Bid opening outside of scheduled meetings 3. Guidance documents 3. 01 Principles governing public procurement 3. 02 Conforming to legal requirements 3. 03 Use of alternative procurement methods 3. 04 Use of the single source procurement method 4. Exposure drafts 4. 01 Developing the business case and procurement plan 4. 02 Competitive dialogue procedures (alternative procurement method) 4. 03 Post implementation reviews 4. 04 Application of weighting methodologies 5. Glossary

CTC Principles Governing Public Procurement 12 Principles Accountability Competitive Integration Supply: procurement should be carried out by competition unless there are convincing reasons to the contrary Integrity Consistency Informed decision-making Effectiveness Legality 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 Responsiveness Fair-dealing 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 $250 k 2. Business cases, 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