Global Procurement Summit 2020
February 11, 2020, New Delhi, India
Global Procurement Summit 2020
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Professionalization of Procurement
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  • Description
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  • Discussion

About speakers

Ashutosh Vajpayee
Joint Secretary, Economic Affairs at Government of Rajasthan
Xiaoping Li
Senior Procurement Specialist at World Bank
Meena Agarwal
Director at NIFM
Shanker Lal
Lead Procurement Specialist at World Bank

About the talk

The plenary session 3 was presided over by the following speakers

Speaker 1: Mr. Ashutosh Vajpai, Joint Secretary, Economic Affairs, Government of Rajasthan

Speaker 2: Mr. Xiaoping Li, Senior Procurement Specialist, World Bank

Speaker 3: Ms. Meena Agarwal, Director, NIFM

Speaker 4: Mr. Shanker Lal, Lead Procurement Specialist, World Bank

00:00 Intro

07:50 Procurement professionalization intro

08:25 Public procurement

11:00 World Bank experience

15:05 World Bank experience – career path

18:13 European Union

20:31 Africa

23:27 Countries’ experiences

28:20 Global professional networks

32:15 Public procurement – size and criticality

36:17 Mandate to NIFM

41:20 Public procurement – advanced course

45:20 World Bank’s initiatives for the professionalization of Procurement in India

50:32 Free certificate programs (MOOC)

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It's my pleasure to be with you today. I would like to express especially specific times to Emma and the word Bank. boat because four past few months I have been discussing with both of the organization that one of the most critical part is the professional ization in procurement alarm pretty much happy. They could consider it to have a specific dedicated session of this session. My sincere thanks to my mind World Bank book. Before I introduce and I give opportunity to our esteemed the speakers on the domain. I would

like to share a few things with you. boss 20 more than 25 years I have been working with the government dealing with public procurement public financial management project management. What I have observed. During all these years. I've got chances to meet number of procurement professionals across the country and across the world as well. The thing which I realized is that when we say a procurement expert. Generally what I could try them out that someone is either a procedure

expert someone is either and research-based Export or someone is an operational expert. Define procurement person who is a combination of all these things. Practicing professional is another segment. For what I have realized. What we should start thinking in the direction. Should we create? a basic professionalisation in the field of procurement number one issue is if we take our country into Focus, we do not have a car. Half procurement people there is no like Indian

procurement service or state procurement service. Nothing is like that. number two is if a person who is performing procurement functions a different levels of national level procurement processes and organizations doing procurement refined a considerably high level of expertise available at the country-level and as you must have witnessed from the morning today that we have good number of expertise available. But what level what is happening at the sub National level what is happening at the evil Municipal

level levels? So there was one trigger. On the morning. The procurement in India is about 20% of the GDP. Who has calculated Bangladesh? Who has a really calculated it? Is it possible to calculate today with the government of Rajasthan? You just cannot calculated what exact percentage of the procurement of the GB different calculations? Number one number two, it comes to the data analysis. Do we have a proper data analysis system when the entire budgeting system does not have a major head

minor head subhead object head. So there are fundamental issues. Which we must think over and to address it because once the data is collected, then it can be analyzed in an effectively. So these are the issues which are before you all and I'm putting all these questions coming to the capacity development. There are many people have got together in years and years of experience working in procurement. Are we creating the lines of expertise downloads? In the medium of capacity-building in the field of procurement

what we have some training hear something in there fortunately what bank has designed a full-fledged. Program which is an online course as well. National Institute of financial management in faridabad is also conducting trainings administrative staff College in Hyderabad. They also conduct training and L&T has also started a very good Training in the field of construction project management. What other than peas? Where are the trainings much more knowledge interdisciplinary knowledge multi-disciplinary knowledge

banking system. What about the itbs system? What about the contract Management Systems related with the procurement about project management specific trainings. What about the legal and other issues are many many things which a person needs to understand. What about the basic economics macroeconomics? I've been dealing with the macroeconomics of the state since last more than 5 years and after working so many years in the state government and other projects. I have realized that

how less I was doing about macro and micro economy prior to coming to the finance department. Because both things are very much Essential how many of procurement people are able to read the budget documents in a proper way because there are so many people there. How many people think that a procurement plan formal procurement plan? But they still start saying that there should be a procurement plan. So we have to think about it again. So in that Journey, this is a question to all of us without everyone very glad to join this searching and the

sharing or ideals and experience in Pokemon. I worked think another 15-20 minutes to share the experience of professional ization in the bank and the in some regions send some countries in the world. Buford that I would like to Quicken are reflect What is a profession I mean, what weather is sensual animals? We need to build a profession is a papa to go procurement of profession. We normally consider of profession. I think the first one is the education former education

informal education. To view some programs for degrees for diploma bachelor degree master degree set with someone training courses specialized training courses for general education. under the second animals is the quality standards for practitioners and there should be a competent framework under there should be a certain system in place for testing and certification which must be required to practice and what's the weather to be some cold off account.

Compliance framework and there should be some professional body professional associations who regulates all the above, Texas quality is there. And the third element is a career path. And there should be some jobs identify which Pokemon and there's a stream of a up jobs and in the institutions, there should be some system in place to deal with all the professionals were be hired developer and the hall that were awarded based on their performance and they were be retained in the institution. So what is elements in

man? Let's see how much? Pokemon Espeon professionalized in in different countries First I would like to share that experience in the world rank possible in the bank. We could say procurement is a profession. Pokemon team in the bank was created in early 1990s band created the such a team. What's to address Versa versus slow execution of the bank projects in nanning 1990s form. Negative test first to review the bank for the folio. And there were serious delays in different projects and the even the bank internal

debt considered one third of our projects as feeders. It's a powder room. So I'm as one of the recommendations of the task force reviewing the entire portfolio was to create a Pokemon team inside the bank. That that's when we started having Pokemon profession in the bank Herndon that we have a 200 plus professionals Pokemon in the bank and the Indian has our magistrate country team and this 200 people are scattered around the world in different County offices. What's a small pushing pastry in the Harry Potter?

We are organized in one Department with eight units supporting the six regions of the bank. Summer regions have two Pokemon units because of that are too big and increasing our role in the Contra mundum is what was the father of the procurement function. However know we are increasing or realist when things are really in this aspect. Define procurement is quite a unique first. We called ourselves for procurement specialist. However, we don't do vacuuming buy or sell

is it conducted by the bars agencies? So our work is basically a to review the process to provider the video surgery insurance as required by the Banks article sofa agreement. And inside the bank for Gilman always has to do will rules. The first one is as we see is it Sunday? It is full of sugar ants for the bank lending operations is to provide a device to the bar agencies capacity building et cetera official reddish-orange work. Our physician rework is

a highly recognized by the dollar community. And the the thing I will we will serve the servants is the brand name of the bank work. A inside the bank. We have a handle taking care of the professional Pokemon accreditation and the standards and we have a dafont qualification and skills Matrix four different levels of four positions for Pokemon, and we provided the treatments to stop from bicycle training and the advanced courses. And the wind new start new Pokemon professional is higher.

We will always put us some arrangements to ensure the new profession new hire is the has a certain on job training and the worst summer Meandering arrangements to make sure that new person worked at the accredited. So we'll see in black and white year. And do we have a Birkin are how create invitation search codes so basically all staff are accredited different clearance Thursday quotes. in terms of a career path We have a canary procurement jobs identify the procurement

and we have a stream of jobs positions from the entry level to Senior Management level. And physical and procurement specialist stay in the program and family for the entire career in the bank. And I know it we're fixing some challenges somehow I think of procurement jobs in the bank or still not concert in the mainstream of the bank jobs to the people with your columnist and the energy Specialists the water Engineers, etcetera and some people still consider Pokemon is not going to support supporting role in the bank operations.

end Norway are emphasizing to be Innovative and to be certificate to place a roll but the actual need to do so, we really need a new skills and the new qualifications moving to Europe Union as a window. European Union is an egg a single Market almost single. I think I'm almost a free movement of people goods and services send the capital and maybe because of this reason will do professional ization is a more like a a mother at the country-level, but the European commission

has made another offer efforts to promote for vegetable fishing on ization, Define east of the necklace some recommendations on their professional education of a public good Pokemon. Confidence Prima work for public procurement and the reason the years they introduced. a lot of new agenda in public of Pokemon SM access to apartment and go Pokemon and on the wall so dead that do not go over said promote sustainable Pokemon are in Pokemon for Moltres social aspects in public a Pokemon. The whistle organ has a

lot of networking and the exchange of food. Go to practices in the country in the country in Europe. They have a different arrangement to promote. Professional ization like a pimple and a half or something like a some cooperation with the universities in enhance. The formal education is settled and then you in Australia that they have a public of Pokemon Academy it so I wouldn't have to get into all this details and then. look at the African region and in there, I think not go 15-20 years Park assisted to

several universities to set up some Pokemon training programs for Anchorage Resort owner founded the projects in this institution in Ghana is Sammy in Tanzania. Lazzara for Angela from Africa. The third one is sesac in Senegal. It's more like a father for the a francophone African countries over all this year's African countries. They have University is providing programs degree programs in Pokemon overall in the region. There is a high demand for for training of a professor's trainers in public. In some

countries, they have a great day station cyst Arrangements in price and and Eternity have a very unique situation because Africa has inter-government organisations on the original organizations. They are gradually taking on Pokemon capacity include professionalisation African Union commission, and that the original several major regional economic Community was in the ridge that go east African Community South in Africa development community in the West. Person to ever occur will have a y me we'll have a ecowas and Central

Avenue in the area of a Pokemon capacity-building. About their career tracks. I think that you're in some countries they are there are correct checks in this public service. 444 some countries that US and Canada Government Contracting or purchasing essential oil. Under the excuse. They have a recognized. definition of a kid computer answers for Republican Pokemon Laika the one by Walker Alliance professional volcker Alliance National Institute of government purchasing This one covers US and Canada.

I know what are some other institutions. There are certain institutions. They are providing training and the testing certification programs. in the US in the US are turning all the Pokemon is so becoming of attractive career Now they they are introducing. They have introduced testing licensing programs and the money universities. Deadpool by two different degree programs a diploma or even graduate degree programs. In channel, it's quite a different story. Packaging

1970s or even earlier because the country had the lack of planning, Commander you call me. It's so basically contracts contracts were allocated to two different SOS without the competition and then in the 1980s when the World Bank started the relationship with China we introduced competitive tender room first time in China and Lauren 80s or even nandez? Basically Pokemon. What's the only available for nausea? SOS license to two conductor International treaty do so our

listing Bajan even that was a situation until early 2000s. And then the bank have to channel to set up some Pokemon training programs in five universities and the world which one these efforts over a year since then the tendering companies emerge providing Professional Services to to the book children in the end. No, I didn't you money universities in China. They have a Pokemon courses, but they are not there for the grace. For diploma. Internal know Pokemon jobs. I mean no the government

jobs are identify the worst Pokemon Silver in today's government agencies also program and services to the private sector or two to do the S10 Doran companies. Finally, I will not quit going to mention it to Grupo professional networks. The first one is safe. I think many people in this institute charcoal to Charter the instead of a Pokemon that Supply the other one is for Supply Management in the US. I think they have a membership and they provide the training

courses and certificate certificate programs. and they have a lot of and I mean huge source of knowledge. And of course, maybe you need to have a membership to get the into the database. And there was a provide consulting services or copper and services. They do not go through top of shooting to look at that. You're covered the procurement system and the see how it could be improved to or how to identify is a skill gaps in your Pokemon team is such a conference.

so yeah, that's my presentation. Thank you for inviting me and giving me a chance to present the work that an item is doing in this critical area before it was set up for 25 years back. Is this a government Institute under the Ministry of Finance? And if you set up primarily to train newly inducted officers in government in various sectors through the Civil Service examination offices are recruited to various Services many of them during the financial account services of the valley of various sectors that defends the Telecom sector the railways the Civil accounts and this institute to set

up to impart training in finance and accounts with these officers, but we had a lot of infrastructure available. So they Institute went on into the realm of management education and started the running NBA Live courses in financial management and adults who undertook a whole slew of management development programs in various areas. Not one of the key areas, which is 2 cup. What's a public procurement and I think emanates from this energy, you know that you see

good financial management and good public procurement practices have to go hand-in-hand. So the government of India courses training programs in public procurement to have emanated in this institute and over the years because have evolved to announce what we're on is a highly evolved and Candy content of the program is honed after discussing with the Ministry of Finance the public procurement division. So we cater to the specific needs of government across all sectors. This will get a sense of what the overall size energy of

the populace to be trained is talking about the public procurement spend being something of the order of 20% - 30% is not intended to challenge any of the figures that I just happened to pick it from another source as his being acknowledged. Nobody really knows what the size is is it's just amazing to be a matter of conjecture. So I happen to look at your source which mentioned it to 70% but the figure itself is not important to my mind what we really want to signify is that it's a large percentage and

the overall public procurement spend is very high. And what we what government spends on is a whole range of things. I mean, we buy Pens game Clips to hold paper together and be by referral Jets everything that lies in between. So there is a huge range is infinite and the quantum is obviously in Latin prose of rupees and as we acknowledged by BT's because before me in sports Master P O mint lives getting value for money for government, we improve the nature and the quality

of production in the economy and improve the business culture apart from the benefits to be calling me what we're interested in is the government to get the best value for this money and one aspect that actually hasn't come up in the earlier discussion is and this we see everyday when we get training officers in our Institute. DD the set of people who are involved in carrying out procurement activities. I didn't sense of anxiety because necessarily the the rules that the Green Book of Rules has to be exhausted

because it has to be uniform and it has to be seen to be applied uniformly and fail. And the repercussions if it is to be a misstep of a high. In a direct variation can be in Men In some cases it would be something was so what we see is that it's not just that government is anxious that who's the following correctly those involved in procurement are also anxious about what they're doing. So we had this is the end the training program with v device has to be this is the number I must confess just out of my head. I was trying to assess that if the

government size of development is about 30 likes that is a given and even if about 10% of them is dealing with procurement we across the country and I'm talking of the entire central government all the Ministries the Department's the parastatals the autonomous bodies, but universities across government all over the country people that drink procurement. And if they're all to be trained when we need to cater to this kind of numbers. And as I mentioned the emphasis on transparency fairness is extremely high elaborate and people

want to understand and make sure they're doing the right thing. What we have now evolved is going to be it was mentioned earlier that there is no procurement Carter in the government. I think the only exceptions to this are the Ravens and the defense only organization, which it has many of you would be aware nine organized services in Raley's account service to which I belong this one to Mandy HR department in the Navy Personnel Service the traffic service and then you have five Engineering Services and one of them the Indian jewelry

store Services dedicated to procurement professionals. Did join evangelist but through training through practice and two years and years of experience are Hondas procurement specialist and similarly in the case of the defense that is again a whole other dedicated to them but elsewhere in the government people. Do I think Wonder into the area of procurement and then through training and practice to learn? the The audio management development program that we started in a recognition by the department of expenditure the public procurement division

of the Stella Rosa at nfm has been playing in this area. So in your 2017 Institute entered into a mou with the ministry the ministry for the spot wants to make sure that across people across the government. Everyone is everyone who needs to be playing the strength and demanded set for us was that we should run as many courses as possible and make sure that this is this happens. So we we we signed a three-year the more you to begin with this year. They have renewed it for another three years. So the

ministry continues to report faith in our Institute in recognition of the work that we have done in these last three years. The flagship program is a basic program and procurement which runs over. Of 6 days and we run it as many as thirty two times in a year or so out of 52 weeks. Did I at least 30 weeks of the European be running this program? And is it still going strong the numbers continue to program in very large numbers and what are the basic principles of

public procurement Wichita was the inventor of goods or services offer Consulting Services non Consulting Services what all of this and these are all sorts with reference to the rules that have been laid down by the degeneration and she used to refer to earlier on their procurement manuals for each of these segments. And with these documents is the base de clases walk through the entire process. Using it procurement is involved that are Hands-On sessions there a case

study Quizlet so that the boys who are trying to internalize this can put themselves in situations of doubt that they'll likely to be in down the line and try to think all these rules to be a flight to the situations. They find themselves in and the has been for the last five years great emphasis on it procurement. So does online training provided for the entirety procurement process and the most recent initiative of the government the government in market place. That is

all too extensively covered. d Trina's if I may say so the spoon that we have and cared I must confess being in the capital city. We have an inherent Advantage weekend change the time of you notice those people who are conveniently situated in the city. There are people who are experienced practitioners who have been done work Hands-On because this is not an area we can just be learned through classroom pedagogy experienced professionals who have two ears bigger bean and every tricky situation that delivers to find oneself in so it comes with like a wealth of experience

and the of the trainees who attend forces benefit from built. Apart from the basic course, which is which as a citizens. Just do most lights we have beer on the advanced course where the more esoteric the areas of sustainable procurement and the other International best practices exploited all of this brought into it. We have also ventured into the area of arbitration training because We obviously good the way 26s and procurement is to have good contract AB initio

good contract management. And in the event you do have a failure situation how to deal with arbitration. So this situation is also covered through a separate co-operation, which we started recently this year and I'm happy to inform you that that is being the very well-received we could be getting large numbers of requests for that program. and the one part I want to leave on the table is the wave of the future. We Marketplace was initiated 3 is back.

Here we have to make a distinction between Ramen and Pho Chase. There is a lot of punches that goes on in government, which doesn't require the intense kind of procurement training that we buying pot in the basic and advanced courses. So we Run 3D model on just the government E Marketplace, which gives people who would only need to do some immediate purchasing the hands-on experience of how to negotiate the way to the government in Marketplace. And the last one to leave on the table is the way forward.

Justice nachos and numbers if he have done in the recent past is the basic procurement process covered more than 7,000 participants almost touching 3000 for The Amity market place in the universe. In times to come the tortoise weather the offeree into management education should be followed when should also cover the area of procurement and whether a knife and shoot in times to come from a full-fledged maybe a 1 year degree program or diploma program in public procurement, but that I think would happen if

the government decides at some point. I'm just contemplating. I don't know that there's anything such thinking that the people who are to be taken onto positions where CDs for filmmakers to be done whether that has stipulated that they shouldn't have an education qualification in that a degree or diploma. So if these two Talk to materialize then the time may be right somewhere in the future to run a full-fledged educational degree cost in procurement and what have maybe intense research studies

on green procurement or areas have been mentioned it procurement so many issues there and people in the hurly-burly of every day working don't have time to sit and think through all these issues in Aztecs weather that kind of research needs to be done in a place like the nifm and in our thoughts for future years. But as of now, we are enjoying giving All in government of India clear understanding of how to go about preparing. Thank you. I want to thank personally everybody for coming to this event and I hope that it was worth

the discussion representations. I want to keep it very brief so that you have time to ask certain questions. Also. I'm just going to focus on our very first in India for professional education. Mostly covering the capacity-building part. Does Jessica background of World Bank relationship with India? India was actually the founder member of World Bank group and the first operation from the World Bank in India was in 1949, which was a 34 million loan to Indian Railway. So we also a very long relationship and

Mini update meaning of the staff members are from their way in our office. So if you see our objectives, we have two objects Ibanez ending extreme poverty and the promoting shared prosperity and whatever we do is linked to achieving these two objectives. So because of this we are not just focusing on the landing operation, but also on the capacity building and strengthening our country system and in the morning you mentioned about the World Bank is also Bank of ideas of things we learned from some countries across the world and we try to bring in other line countries.

We have been discussing about the Quantum of public procurement. I don't want to add a figure but definitely it is substantial and if you see the size of federal government all state-owned Enterprise at all delivers activities lending operations, we have in five states currently Rajasthan is one of them with mr. Wash bay mention. We also had no State Apartment C projects which are coming up in a state like Punjab West bangal Tamil Nadu and there will be a major. Open Anton capacity building on public record and reforms through the lending operations.

We actually identified the importance of procurement training many Deckers back and in 1996. He entered into a partnership with oski Hyderabad and we have been conducting the training program in Hyderabad for almost no of a 24 years. So there are almost at 3 program. And residential training program almost thirty forty percent participants from outside India very recently expanded to Lucknow the training program involving funded procurement in partnership with IM Lucknow again, and the

faculties also Rhonda. I'm not know along with the World Bank and external experts but we also went beyond the devil being funded procurement because if you see our funding in India is a fraction of a percentage of GDP play free just focus on bringing the capacity of an improvement in our projects. It is not really going to help in achieving our objective. So be expanded and we went beyond our funding and the be entered into partnership with miniature oceans because if

we are talking about 70 Alexa 7 million potential Target. So our model in India has been in partnership with renowned institutions. So we started registration training program almost to three years back in partnership with LMT in there brother. Campus NBC 6 Days Inn Mission training program almost 25% of our bed and we have got very good feedback from for this project particularly because I'll empty brings the Contracting side the expertise and we bring the public procurement side expertise,

which are directly impacted by the World Bank. We have almost 20 programs already completed. This will be 2 or 3 days non-traditional training, but we try to cover entire aspects of the contract Management in these two three days. Going by the size of Market VA took some initiatives in India and they subsequently became worldwide initiative be initiated a online public procurement training program, which is not a donor space speaker. Not a country specific program website and it is no translated to many languages and we have more than a hundred

thousand enrollments in this program. And we feel that if you only want a basic knowledge of public procurement, this is going to be very useful. But if you want a larger result of understanding are specialization than the other programs which are also collected in India on contract management. Again, it is available on Walgreens website and also a procurement learning program is available. So when I think problem area for our project was the contractor dispute resolution and identifying the problem be entered into partnership with imma and launch this program, which is just six months

duration program and reading technical expertise here. I'ma bring the faculty and other resources and we have already completed three branches and their next match is starting just now and rest of the time it is actually learning. Maryland diploma program launched in India in partnership with, there are other issues like a symbiosis Institute of Management training program with technical support from the World Bank, and it has been offered since 2014. We have been talking about this now

India becoming a 5 trillion dollar economy. And today interpretations one life going for infrastructure development has been identified very clearly that. Lot of resources would come from the private sector so identifying this sort of opportunity and also be feeling that there is a need for capacity-building public-private partnership very shortly. There will be a dedicated program in CPP to be offered by I'm again with technical support of the bank Global program,

which are available from EPMD battery wanted depending on the size of the market in India to design a specific program. So this will be a game a pilot and if successful in India, we may try to replicate in other countries. We hope that this will be actually liked by Indian audience and all of our problems are actually focused not just on packages are employees, but also in the private sector or contractor or consciousness the subject we also have been

conducting private sector outreach program and in partnership with a game Bank every year. We have a large workshop and idea there is to train the private sector so that they can bidding evolving funded projects and the boots are responsive to the opportunities. Mr. Tangible mention about the country procurement assessment World Bank in partnership with procurement policy division is conducting the country procurement assessment. Currently. We are covering five states of India

under 6 federal government entities in this assessment Advanced age and the likely to be delivered by June 2029 depart showing this light is this may come up with lot of opportunities for professional education and they're following this government of India and state governments may decide to go for a large-scale capacity-building program in fertilization program. demand-side the procurement reforms so we work with some organizations for setting up requirement of their batteries and a purple bear was to identify and

also help the state governments in professional Edition as of now only one of their batteries operational which is in UV hosted by I'm not no but in the past it was in Rajasthan mother Stewart's also So doing business, I'm not going to repeat but this is again opening opportunity for professional education because there will be a lot of weight is now a public procurement in doing Business ranking and government of India's very serious about the ranking this will open up again opportunity for further traffic violation. And the

last light is on public record professionals Association of India Indian future. There will be Association where all of you can be a member and this will provide the platform for exchange of ideas and also providing say policy a sort of input to the government in policy formulation. As of now, there is a lot of discussion only, but hopefully when we meet meet in the next to Global procurement Sammy, there will be a sensation and we will be Association from outside it is not going to be involved in the initiative, but it will be initiatives of all the professional.

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