Transparent Procurement

This mini-lab focuses into THREE major groups to improve transparency in the Government procurement system.

THREE Major Groups To Improve The Government Procurement System

Estimate Savings & Estimate Cost

 

e-Bidding - Treasury Circular Letter (TCL) No. 3, Year 2009

Initiatives Expected saving (OE)
  • Reduce Threshold value from RM200k to RM50k
  • Usage of e-Bidding module to be fully utilised by all ministries
  • Implementation of e-Bidding should be enforced and made compulsory for all standardised items
Year 1
RM98 mil
Year 2
RM197 mil
Total: RM295 mil


Value Management for OE

Action Plan Expected saving (OE)
  • Threshold value proposed is RM1million and above (MOF to determine the appropriate threshold value)
  • Mandatory VM Valuation Report before tendering
Year 1
- Nil -
Year 2
RM296 mil
Total: RM296 mil


Eliminate Incompetent Suppliers / Service Providers

Initiatives
  • Limit suppliers / service providers to 30 Category Code for each company
  • Review the registration fees for each additional Category Code (after the 10th Category Code) to deter non-focus suppliers / service providers & non-value added middle men
  • Additional criteria for participation in condition of tender such as paid up capital & average annual income statement to ensure capable suppliers/ service providers to participate
  • SSM & other registration bodies (eg. Professional Body, Cooperative) under the law to review & stringent approval based on the nature of business
 

Procurement Planning Mechanism

Initiatives
  • Mandatory implementation of spend analysis mechanism in procurement planning to maximise economies of scale
  • Produce procurement plan with ISO / Standard Operating Procedure (SOP)
  • Procurement plan module in ePerolehan system to be enhanced as per TLC No. 5 Year 2007
2012/01/11
Status:
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