Auditor General says shortcomings in tender processing need to be addressed 'immediatly'

The Auditor General has presented the Speaker of the House Michael Frendo the Report "Public Procurement analysis through case studies 2007 to 2009". 

In its report, the National Audit Office (NAO) esteblished that tender processing was carried out in a manner that was, in general, compliant with legislation for the five case studies under review.

However, the Office said that it "feels that shortcomings identified need immediate addressing."

Evaluation and Adjudication Committees' recommendations  were submitted to the General Contracts Committees in the form of a report, resulting in the creation of a robust audit trail, the NAO explained.
 
Among the findings of the report, the Auditor General said that post award negotiations were encountered.

The report esteblished that while none of the instances could have changed the outcome of the tender proceedings,the "National Audit Office advises caution in recourse to such activity."

This exercise was carried out by the National Audit Office in the light of the need for efficient management of public procurement particularly in view of prevailing financial and economic situations locally and abroad.

In a statement issued on Monday, the Auditor General explained that the main objectives of the exercise were to determine whether the processes in the case study tenders selected complied with prevailing legislation and led to the attainment of value for money.

The report indicates that tender documents were well prepared and were deemed to contain all the necessary information and clauses, helping to reduce ambiguity and objections.
 
The analysis also cocncludeed that departmental estimates were, on occasion, grossly overestimated, potentially inhibiting the attainment of value for money.
 
It added that the Department of Contracts maintained "its legally-stipulated role, ensuring smoother running processes."
 
The statement said: "Evaluation and Adjudication Committees were staffed by the same officials - Contracting Authorities do not take advantage of the possibility to have members' skills matching tasks." 
  
The NAO said permits from competent authorities were sought during tender planning stage, "reducing potential time/cost overruns during project implementation."
 
However the office noted that in some instances, "the centralised filing/minuting system was maintained in a deficient manner. When coupled with staff turnaround, this resulted in organisational amnesia."
 
The report also shed doubt on the technical capabilities of the General Contracts Committee.

"Prevailing legislation allowed for the creation of Special Contracts Committees, but this option was never utilised," it said.
 
Tender award regulations were adhered to, the NAO said, and the risk of appeal lodgement and promoting corporate image was reduced.

The office also concluded that appeals lodged were handled in full compliance with prevailing legislation, with appellants not contesting the decision.
 
Cases of artificially-induced emergencies, triggering claims for urgency impinged negatively on bidder outreach during launch and potentially damaged the corporate image, the NAO said.
 
It also said that a continuous liaison between the Department of Contracts and the Contracting Authorities ensured a smoother running of the tendering processes.
 
Ethical considerations were observed by Contracting Authorities when setting up committees, the NAO noted.