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Capacity
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Capacity Development: Procurement Training and Institutionalization (CD: PTI)
Contents
1 Executive Summary..........................................................................................................4
2 Introduction.......................................................................................................................6
2.1 O!ective o" t#e study..................................................................................................$
2.2 %cope o" t#e study:......................................................................................................$
2.& 'et#odology o" t#e study............................................................................................
3 Findings of the Survey......................................................................................................8
&.1 Do t#e organizations #ave dedicated procurement department or t#ey !ust get t#e !o
done y ot#er departments................................................................................................*
&.2 +re t#e pro"essionals responsile "or t#e procurement o" di""erent organizations in
,anglades# trained in any procurement course -#at courses t#ey #ave taen -#ere
#ave t#ey got t#ese trainings............................................................................................./
&.& 0noledge aout CPT o" 'inistry o" Planning and its role..................................13
&.4 Type o" Procurement (5oods6-ors6%ervices) dominates t#e organizations............11
&.7 Procedures o" procurement in t#e organizations and noledge on PP+ 233$ 8 PP9
233*...................................................................................................................................11
&.$ 0noledge on Procurement Cycle and 'et#ods and ris "actors............................1&
&. 0noledge on e5P and its advantages and disadvantages.......................................14
&.* +areness aout egal issues aout procurement....................................................14
&./ +areness and -illingness aout t#e need "or improvement o" Procurement
noledge.........................................................................................................................17
&.13 ;
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1 Executive Summary
T#e concept o" t#is study is aligned it# t#e sustainaility o" ;%C, under t#e Pulic Procurement
9e"orm Pro!ect (PP9P) II +=.
%ince t#e PP9P II commenced in 233*> training "ocused e as pulic
procurement is a core activity "or ministries and related agencies. In t#e perspective o" ac#ieving long
term sel" sustainaility> ;%C, s#ould consider t#e possiility o" diversi"ying t#e pool o" clients> t#us
targeting also t#e private sector in addition to t#e ministries t#at #ave not een addressed yet.
Private companies are concerned it# pulic procurement not necessarily "or t#eir internal practices>
ut ecause #en idding "or tenders t#ey must aide y pulic procurement regulations and
procedures. ?evert#eless pulic sector@s procedures can e considered as a template and
implemented> it# certain "le y private organizations as ell.
T#e o!ective o" t#e present study as to appraise private sector@s aareness and understanding o"
pulic procurement practices> and t#e degree o" interest in attending training. + sample o" 47
pro"essionals as selected to represent di""erent "ields o" activity: aning> ?5O@s and development
sector.
T#e scope o" investigation as limited to t#e part o" t#e private sector t#at issues tenders on a regular
asis> as ;%C, already deliver> and continue to implement> training courses on pulic procurement
"or t#e idding community.
T#oug# t#e size o" t#e panel as ept intentionally small> it allos draing a "irst picture o" #o
private organizations relate to pulic procurement.
T#e study pointed out t#at t#ere is an alarming level o" noledge gap aout t#e Pulic Procurement
+ct (PP+) 233$ and Pulic Procurement 9ules (PP9) 233* among t#e pro"essionals responsile "or
procurement in many organizations. T#is noledge gap can e signi"icantly reduced t#roug#
relevant training programs.
9esponses "rom t#e intervieed pro"essionals produced surprising in"ormation suc# as:
1. /1A o" t#e pro"essionals did not attend any procurement course.
2. Only one "ourt# o" t#e respondents no aout ;%C, and t#e courses t#ey provide> #ile
$A o" t#em do not no.
&. *A o" t#e respondents do not no aout CPT it#in 'inistry o" Planning and its roleBonly 22A people no aout it.
4. 'ore t#an /A o" t#e organizations #ave t#eir on procurement procedures> and $3A t#in
t#at t#eir procedures comply it# PP+ 233$ 8 PP9 233*. oever> in contrast to t#eir elie">
"rom t#e replies to anot#er uestion it emerged t#at most respondents do not indeed no
aout PP+ 233$ 8 PP9 233*.
Opportunities t#at seem to e nocing at t#e door o" ;%C, are:
1. /&A o" t#e respondents are aare o" t#e necessity to improve t#eir noledge level o"
procurement. +nd *4A o" t#e respondents are illing to arrange training "or t#emselves and
t#eir personnel.
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2. +lmost #al" o" t#e respondents t#in t#e price "or 7 day training s#ould e it#in ,DT 13>333
and &&A t#in t#ey can spend up to ,DT 17>333.
&. +mong all t#e respondent 4& A replied t#at t#ey are illing to go to t#e main campus o"
;%C, in Daud 0andi (almost 43 m "rom D#aa)> #ile one "ourt# do not> and t#e rest is not
sure.
T#e lac o" noledge among private sector@s pro"essionals it#in di""erent organizations in
managing procurement> and t#e declared illingness to improve t#eir noledge t#roug# relevant
training suggest t#at t#ere is a maret "or training on PP+ 233$> PP9 233* and e5P t#at is not eing
"ully e
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2 Introduction
T#e %tudy as designed to identi"y t#e demand o" private sector pulic procurement contractors "or Training on pulic procurement t#at are and can e addressed y ;%C,. =or t#is purpose a
uestionnaire survey and "ocus group discussions ere carried out. T#e uestionnaire as prepared
y t#e consultants o" t#e pro!ect team> and revieed y t#e management and "aculty trainers o" ;%C,.
T#e study aims at meeting t#e reuirements o" ot# t#e Pro!ect and its stae#olders.
2.1 ,'ective of the study
T#e study targeted private sector@s organizations issuing pulic procurement tenders> and "ocused on
t#e "olloing o!ectives:
• To dra a "irst picture o" corporate structure> procedures and activities relating to
procurement in di""erent organizations in ,anglades#.
• To assess t#e demand "or procurement training.
• To identi"y t#e level o" aareness aout PP+ and PP9
• To appraise t#e sale aility o" pulic procurement training courses and t#e appeal o" di""erent
locations (it#in or outside D#aa)
2.2 Sco$e of the study
T#e study is divided into to partsB (i) Fuestionnaire %urvey and (ii) =ocused 5roup Discussion
(=5D). Pro"essionals "rom 47 di""erent ?5Os and Private Organizations ere surveyed. T#e study
as conducted it#in t#e city o" D#aa. %urvey and "ocus groups targeted to types o" pro"essionals:1. -oring in ?5O@s and development organizations
2. -oring in private companies.
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% t e p 1 G D e " i n i t i o n o " t # e g e o g r a p # i c a r e a
% t e p 2 G P r e p e r a t i o n o " t # e u e s t i o n n a i r e " o r s u r v e y a n d " o c u s g r o u p d i s c u s s i o n
% t e p & G C o n d u c t u e s t i o n n a i r e s u r v e y a n d " o c u s g r o u p d i s c u s s i o s n
% t e p 4 G D a t a C o l l e c t i o n G D a t a a n a l y s i s a n d i n t e r p r e t a t i o n
% t e p 7 G 9 e p o r t p r e p e r a t i o n a n d s u m i s s i o n
Capacity Development: Procurement Training and Institutionalization (CD: PTI)
2.3 Methodo+ogy of the study
3 -uestionnaire /na+ysis and Inter$retation
T#e uestionnaire as distriuted via eHmail to 47 organizations t#at ere previously contacted y
CD:PTI (PP9P II +=) national consultants and #ad given t#eir availaility to participate in t#e survey.
Fuestions and uantitative outcome o" t#e uestionnaire are reported in +nne< +. Intervieees@
company and position are reported in +nne< ,.
3.1 %o the organi0ations have dedicated $rocurement de$artment
T#e respondents ere ased #et#er t#eir organizations #ave a dedicated procurement department or
t#ey !ust get t#e !o done y ot#er departments: 43A do> #ile in t#e remaining $3A procurement is
carried out y ot#er departments> e.g. +dministration> =inance or +ccounting.
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Ot#ers Ies
?o
,rgani0ations having dedicated $rocurement de$artment
3.2 /re the $rofessiona+s res$onsi'+e for the $rocurement trained in any $rocurement
course
Only /A o" t#e respondents did ene"it "rom "ormal training in pulic procurement. /1A never
attended to any procurement course: #ile on one side t#is very #ig# percentage allos to envisage a
road room "or ;%C, training activities> on t#e ot#er side points out #at mig#t e a constraint
(su!ect to "urt#er investigation) in t#e usiness culture it#in ,anglades#> t#at is underestimating t#e
importance o" "ormal training (learning "rom e
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9espondents ere also ased #et#er t#ey no #ic# institutions provide procurement training.
9eplies reveal t#at $2A o" t#em do not no #ere training is availale> #ile &2A do.
38
62
4no5+edge a'out the Institutes $roviding rocurement raining
Ies ?o
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Intervieees ere also ased #et#er t#ey no aout ;%C, and t#e courses t#e College provide.
%igni"icantly $A ere "ound to #ave no noledge o" ;%C,. oever> 24A o" t#e respondents
came to no aout ;%C, a"ter eing in"ormed t#at t#ey are part o" I;,> t#us s#oing t#at ;%C,
need to upgrade promotion activities and in"ormation campaigns.
24
$A
no5+edge a'out ES*7
es ?o
3.3 no5+edge a'out * of Ministry of +anning and its ro+e
*A o" t#e respondents replied t#at t#ey do not no CPT it#in 'inistry o" Planning and its role>
%uc# #ig# level o" disin"ormation is surprising #en it comes to organizations involved in pulic
procurement> as t#eoretically (and sensily) t#ey s#ould con"orm (it# a certain degree o" "le in "act> t#at in most cases
idders are t#e same companies "or ot# pulic and private sector to pulic procurement tenders.
22
(8
4no5+edge a'out * of Ministry of +anning and its ro+e
Ies ?o
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3.4 y$e of rocurement 9#oods:;or
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+nd interestingly $2A t#in t#at t#eir procedure is compliant it# PP+ 233$ 8 PP9 233*
622&
18
*om$+iance 5ith / > )
Compliant ?ot Compliant ?ot %ure
oever> in contrast to t#e respondents@ elie"> t#e replies to a "olloing uestion pointed out t#at
most o" t#em do not no aout PP+ 233$ 8 PP9 233*> t#us invalidating t#e present "igure. It is
evident t#at t#ere is a t#e noledge gap is ide and could e "illed y appropriate training.
18
*2A
no5+edge on /2&&6 > ) 2&&8
es ?o
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3.6 no5+edge on rocurement *yc+e and Methods and ris< factors
T#ree uarters o" t#e respondents do not no aout 'et#ods and steps o" t#e Procurement Cycle
according to t#e PP+ or PP9. T#e demand "or training is latent and t#ere is t#e need o" an e""ective
aareness campaign to ring it to sur"ace.
es ?o
no5+edge of rocurement *yc+e > Methods
9eplies to anot#er uestion s#o t#at #al" o" t#e respondents are not aare o" t#e 9is =actors
associated it# t#e violation o" PP+ 8 PP9. =uture aareness campaign s#ould t#ere"ore stress t#e
importance o" understanding and mastering Procurement +ct and 9ules.
4!"1
no5+edge a'out )is< Factors
es ?o
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3.( no5+edge on e# advantages and disadvantages
& A o" t#e respondents do not no aout e5P. T#is "act clearly indicates t#at t#ere is a need "or
training on e5P.
es ?o
no5+edge on e#
3.8 /5areness a'out ?ega+ issues a'out $rocurement
T#e respondents ere ased aout #et#er t#ey ere +are aout egal issues regarding nonH
compliance it# PP+ 8 PP9 ut most o" t#em are not aare o" it. T#is outcome is in contrast it#
t#e replies to &. 0noledge aout 9is =actors (22A loer aareness)> as riss are a component o" primary importance it#in t#e legal issues.
+are ?ot +are
/5areness a'out ?ega+ issues
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3.! /5areness and ;i++ingness a'out the need for im$rovement of rocurement
"rom t#is point on t#e uestionnaire addresses directly ot# consciousness o" noledge de"icit
and illingness to ene"it "rom "ormal training in order to "ill t#e gap.
'ore t#an /&A o" t#e respondents are aare o" t#e necessity to improve t#eir noledge level o"
procurement.
?eed to Improve ?ot ?eed to Improve
/5areness a'out the need for im$rovement
+ similar percentage declared t#e intention o" attending training courses.
-illing ?ot illing ?ot sure
;i++ingness to attende training
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Capacity Development: Procurement Training and Institutionalization (CD: PTI)
T#e aove ansers con"irm t#e e t#us
opening good perspectives "or ;%C, provided t#at e""ective aareness campaigns and direct
promotional activities are planned and regularly carried out.
3.1& Ex$ected %uration and rice of the trainings that can 'e offered
T#e uestion aout duration o" t#e training and t#eir tentative udget soug#t to "ind out #o long a
course s#ould e and at #at price it s#ould e o""ered.
?ot %ure 1 Day 2 Day & Day 4 Day 7 Day 'ore
11.11A*.*/A
2.22A
23.33A
3.33A
4$.$A
11.11A
Ex$ected *ourse %uration
It #as een "ound "rom t#e survey t#at more t#an 44A respondents t#in price s#ould e it#in ,DT
13>333 and &&A t#in t#ey can spend up to ,DT 17>333 "or 7 day training.
?ot %ure pto 13 pto 17 'ore
Suita'+e rice for a " day raining
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In order to roaden t#e picture> t#e study #as een integrated y searc#ing at #at price ot#er
renoned institutes provide training courses. T#e tale elo s#os t#e price range o" typical training
o""ered y ;%C,@s competitors:
S+. @ame of InstitutionFees of
1 %ay course A
Fees of " %ays course A
9nonBresidentia+=
&1,anglades# Institute o" ,an
'anagement (,I,')2>333 />133
&2,anglades# Institute o"
'anagement4>333 17>333
&3,d!os.com &>333 13>333
*Including lunch and to coff!! "r!a#$
,anglades# Institute o" 'anagement is o""ering tec#nical courses at #ig#er price considering t#eir
ot#er regular courses. Procurement courses o" 7 days> o""ered y ;%C,> may e c#arged eteenTaa 13>333 to Taa 17>333> considering t#e responses "rom t#e study and t#e statistics o" t#e "ees
structure o" ot#er institutions. +pparently day long courses may e c#arged it#in a range o" Taa
2>333 to Taa 4>333 depend on t#e tec#nicality o" t#e su!ect o" t#e courses.
3.11 ;i++ingness to go to main cam$us of ES*7 for training
+mong all respondents 7&A replied t#at t#ey are availale to attend training courses at ;%C, main
campus outside D#aa> 24A are not illing> and 22.22A are not sure #et#er going outside D#aa
suits t#em..
?ot %ure -illing ?ot -illing
;i++ingness to go to main cam$us of ES*7 for training
3.12 Mem'ershi$ of an association
It as "ound t#at &*A o" t#e respondents are memers o" some associations and 7$A are not memer
o" any associations. Fuoted associations are: I;,> ,;IO+> 9;+,> ,T'+> ,5';+> ,0';+>
,+CI> DCCI> =,CCI and "e ot#ers.
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It can e assumed t#at t#ese associations can e a very e""ective partner in promoting training courses.
;%C, can uild relations#ip it# t#ese associations y signing 'inutes o" nderstanding and
t#roug# t#em o""er training to t#e memer organizations (t#e terms o" suc# agreements to e
negotiated).
Do not no es ?o
Mem'ershi$ of /ssociations
4 Maor Findings of the Mar #ile t#e remaining 44 per cent said t#ey asically procure
only 5oods.
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-#ile all organizations (e and $3
per cent t#in t#at t#eir procedure is compliant it# PP+ 233$ 8 PP9 233*> most o"
t#e respondents (& per cent) do not no aout PP+ 233$ 8 PP9 233*> and #al" o"
t#em are not aare o" t#e 9is =actors associated it# t#e violation o" PP+ 8 PP9
and t#e legal issues regarding nonHcompliance. Only one "ourt# o" t#e intervieees no aout e5P.
+lmost all respondents are aare o" t#e necessity to improve t#eir noledge level o"
procurement> and *4 per cent are illing to attend pulic procurement training.
'ore t#an 44 per cent o" t#e respondents t#in price "or 7Hday training s#ould e
it#in ,DT 13>333 and && per cent declared t#at t#ey could spend up to ,DT 17>333.
al" t#e respondents 7&.&&A are declared t#eir availaility to attend courses at ;%C,
campus in Daud 0andi. One "ourt# is not illing and t#e remaining ones are not sure.
Only &* per cent o" t#e respondents are memers o" some associations.
5 Major fndings rom the Focus roup discussions
To =ocus 5roups discussions ere conducted y CD:PTI (PP9P II +=) national consultants
it# &7 participants. 'a!or "indings are:
Only 7 people out o" &7 no aout procurement process ut none are aare o" t#e
PP+ and PP9.
T#ey asically outsource t#e procuring activities
?o one #as any idea aout e5P and its advantages
T#ey t#in t#e noledge level o" PP+ and PP9 s#ould e improved and "or t#at
organizations are illing to train t#eir employees in c#arge o" procurement activities.
T#e price "or & to 7 day training s#ould range eteen 2>333 and &>333 taa per day.
Jery "e #ave t#e noledge aout ;%C, ut s#oed interest to send people to main
campus a"ter eing told aout it.
6 %ecisions can 'e made
T#e "olloing decisions can e made ased on t#e "indings o" ot# Fuestionnaire and =ocus 5roup
discussions:
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Considering t#at pro"essionals managing procurement in di""erent organizations
s#oed a great lac o" noledge> and since t#ey are illing to improve t#eir
competence t#roug# relevant training> t#ere is an opportunity to maret suitale
training courses on PP+ 233$> PP9 233*> and e5P.
T#e duration o" t#e training may vary it#in a range o" & to 7 days it# a price per
day ranging "rom 2>333 to 4>333 taa.
Training can e o""ered at ot# t#e campuses in D#aa and Daud 0adri..
+"ter designing t#e courses t#ose s#ould e properly communicated to t#e target
audience t#roug# appropriate promotion and aareness tools and activities> suc# as a
compre#ensive and update esite> ors#ops organized it# t#e support o"
associations> and direct meetings. -e #ave "ound t#at many pro"essionals do not
no aout ;%C,> its activities and t#e trainings t#e College provide.
+ sound ,usiness Development Plan s#ould designed prior undertaing any action>
and its implementation supported y dedicated mareting persons allocated "rom
among ;%C, sta"".
! "ecommendations
;%C, s#ould:
Plan training courses tailored to t#e needs o" private organizations utilizing modules
and material prepared y CD:PTI (PP9P II +=)
0eep t#e price o" t#e courses it#in t#e range eteen ,DT 2>333 and 4>333 per day.
On t#e asis o" t#e ,usiness Development Plan t#at is eing prepared y CD:PTI
(PP9P II +=)> ;%C, #as to sc#edule training courses "or eac# "ort#coming season.
Implement t#e Communication Plan t#at is included it#in t#e ,usiness Development
Plan> and plan activities covering at least one year.
,uild relations#ip it# pro"essional associations y signing 'inutes o"
nderstanding ('o) in order to estalis# contacts it# memer private
organizations.
8 *onc+usions
,ased on t#e study and analysis o" t#e data collected "rom t#e survey and "ocus group discussions(=5D) it is evident t#at t#ere is a #uge une
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private sector> and ;%C, #as t#e capacity to capitalize t#is opportunity. ,y developing t#e private
sector nic#e maret o" contractors eside t#e onHgoing training activities addressed to t#e pulic
sector> ;%C, ould e ale to ac#ieve long term sustainaility.
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