Viable circumstances for financial negotiations in Pakistan contracting process
Yoder, Elliot Cory
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In Pakistan, competitive forms of procurement include only two-step sealed bidding. In the United States, negotiated procurement falls under competitive forms of procurement. Pakistan established the Pakistan Procurement Regulatory Authority (PPRA) in 2002 on the recommendations of the World Bank and enacted PPRA rules in 2004 based on the 1994 UNCITRAL model procurement law. The purpose of PPRA rules in 2004 was twofold: First, it implemented uniform procurement regime in all federal and provincial procurement agencies. Second, it enhanced transparency and capacity of the procurement system. Since the enactment of PPRA rules in 2004, the model UNCITRAL was amended in 2011. The amended 2011 UNCITRAL law also allows negotiations, such as the competitive form of procurement. The authors evaluate the Pakistan procurement system UNCITRAL model law and the U.S. acquisition system with an intention to find viable circumstances under which negotiated procurement can be initiated in Pakistan. The authors use the analogous Yoder’s Three Integrated Pillars of Success (TIPS) and find room for improvements in three pillars of Pakistan procurement: personnel, platforms, and protocols. The authors recommend that negotiated procurement be implemented in Pakistan, provided that the three pillars of procurement system are strengthened, along with the broadening of the accountability loop.
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